IRS Bank Levy Frequently Asked Questions
Are there companies that can help me with the bank levy?
Yes, there are many companies out there that can help with a bank levy. It is important to choose one that has experience with bank levies. It is highly recommended that you use a tax professional to resolve a bank levy. Your odds of getting a favorable decision greatly increase with the use of a tax company, especially when dealing with a levy. If you needed immediate help please call us at 800-717-2797 or fill out the form on the right can be contacted immediately.
How long do I have until IRS seizes my funds once I receive notice of intent to levy?
Once the IRS issues a notice of intent to levy there will be 30 days until they can take collection actions. If they decide to use an IRS bank levy they can freeze the account 30 days after you received the notice of intent to levy. The IRS cannot seize the funds in the bank account for 22 days once the account is frozen. The minimum amount of time it will take for the IRS to seize funds from a bank account from the date you receive the notice of intent to levy is 52 calendar days.
How long do I have once the IRS freezes my bank account?
By law the bank cannot send funds over to the IRS immediately once they issue the levy to the bank. The bank must wait a minimum of 22 days from the date they are contacted by the IRS to send funds over. These 22 days are used to verify ownership of the account.
Why is the IRS garnishing my bank account?
The IRS garnishes bank accounts to satisfy outstanding tax debts. They use garnishment as a method because all other attempts to collect have yielded no results and they use this method as a last resort collection mechanism.
How much can the IRS take from my bank account?
The IRS will seize the amount that is on the notice of levy notice. If the notice of levy amount is greater than the amount in the bank account then the IRS will take all the funds it can and apply that against the total amount owed. The only funds that can be seized are the funds that were in the account at the date the bank froze the account, any additional deposits after that date are not subject to the levy.
Will the IRS seize funds again once they have already taken from the account?
The IRS will have to issue another instance of a levy to the bank if they want to seize funds again. They can do this time and time again until the entire tax liability is covered.
Can a bank levy be stopped?
Yes a tax levy can be stopped. The IRS does not like to levy bank accounts and only uses it as a last resort collection mechanism against taxpayers. The IRS has many methods that can be used in order to release the tax levy. Most of the time a levy can be release through paying in full, setting up a payment plan, settling taxes in an alternative manner, or by appealing the filing of the levy.
What is an IRS bank levy?
An IRS bank levy is the legal seizure of funds from your bank account in order to satisfy unpaid IRS taxes owed. This can be your checkings account, savings account or any other account held at your bank that the IRS can seize.
