Professional Services

Bank Levy

An IRS (or state tax agency) bank levy is when the IRS sends to a taxpayer's bank a Notice that they are seizing the funds in a taxpayer's bank account. The bank is instructed to freeze all funds in the account for 21 days and then forward the funds to the IRS. Banks are obligated to follow the instructions. (Note: The IRS can also seize funds in other accounts such as investments in brokerage accounts). The 21 day period gives the taxpayer and the IRS an opportunity to resolve the matter either by paying the full debt, settle the debt, or resolve by other means.

Call us immediately if you have a bank levy as there are several circumstances for having the levy released short of fully paying the tax.

Services we offer to Taxpayers:

  • Challenge the levy as not being properly issued.
  • Obtain a partial release if the bank funds are needed for a specific and necessary living expense (this is rarely granted by the IRS and is extremely difficult to do without knowledge of tax law and policy).
  • Prevent the levy if Notice of Levy has not been issued (the IRS is required to notify taxpayer of intent to issue levy prior to sending the Notice of Levy). Once a levy is issued, it is more difficult to have it released as opposed to preventing it initially. This may require one or more of the following:
    • Preparing and filing past due tax returns
    • Negotiating a temporary installment payment agreement.
    • Delay the levy by filing a request for Collection Due Process hearing.

Note: Opening up another bank account may not be helpful to prevent a levy as the IRS can easily locate all bank accounts through a taxpayer's social security number.

Call us now to have your bank levy released.

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