IRS Bank Levy Overview: Rules and What to Do
An IRS bank account levy is when the IRS seizes funds directly from your bank account to cover back taxes you owe. Usually, the IRS contacts your bank about your tax debt. Next, your bank must freeze your assets for 21 days from the day it receives the IRS notice. Consequently, if you don’t take action during that time, the bank sends all the funds to the IRS.
An IRS bank levy will only impact the current funds in the account. In fact, once your bank activates the bank levy, it will not affect any future deposits. The IRS can issue another bank levy later. However, this rarely happens.
Usually, this is the last line of defense for the Internal Revenue Service. The IRS only uses this enforcement collection method after trying to contact you several times without getting a response. To understand more about bank levies and how to stop them, explore the information in the links below.
A bank account levy is one of the IRS’s most aggressive collection enforcement actions. The IRS forcibly seizes funds in your bank account to cover an outstanding tax debt. This link explains how a bank account levy works and what to expect.
You can stop a bank account levy, but you need to act quickly before the IRS seizes the funds. This link explores multiple ways to stop a bank account levy and protect your assets. The right option depends on your situation.
Answers to commonly asked questions about IRS bank account levies.
Worried about an IRS bank levy? We can help. Our A+ BBB rated partner can stop the levy before the IRS seizes your money. Get a free tax consultation to understand your tax options and the fees associated with utilizing a licensed tax professional. Moreover, there is no obligation.
A licensed tax professional can help solve your tax problems without sacrificing your financial well being. Understand the benefits of using a tax professional and request a free consultation with a tax specialist to talk about stopping your bank levy and settling your tax debt.