What Can I Do if the IRS Placed a Levy on My Bank Account ?

Before the IRS can place a levy on your bank account they must first notify you via mail. This is an important detail to consider. Many people think that the IRS can do what they want, but the fact of the matter is that they are obligated by law to inform you before doing anything.

If the IRS has placed a levy on your bank account you will want to fix this problem as soon as possible. With a levy in place you are going to find it very difficult, if not impossible, to do what you want from a financial point of view.

Once you receive a final notice the IRS has every attention of going into your bank account and taking what they want. But remember, you still have time - as long as you act fast.

The first thing you should consider is appealing the notice of intent to levy. At the very least this will slow down the bank levy. You should only do this if you disagree with the levy. You will typically have 30 days to appeal from the date the notice was received. Some common reasons for not agreeing with the levy are the following:

• Already entered into an installment agreement
• Submitted for an offer in compromise before the notice was received
• Filed for innocent spouse relief
• You were never appropriately assessed with the tax liability
• You didn't have a chance to dispute the tax amount owed

Once the levy goes into effect your bank account is essentially frozen. In some cases, only part of your money may be seized. This depends on how much you have in your account, as well as what you owe the IRS in back taxes.

Ways to Stop the IRS from Seizing Money from your Bank Account

• Pay the IRS in Full
  This is the most obvious way to remove the bank account levy. The IRS will immediately stop the levy and give you back control of your account once the amount has been paid in full including interest and penalties
  
  
• Enter into an Installment Agreement
  An installment agreement is the most common for of paying back the IRS when you cannot pay in full. With this form of agreement you are allowed to pay the taxes back in monthly payments until the total amount is paid off. With this type of agreement you are considered in good standing with the IRS as long as you are onetime with your monthly payments
  
  
• File for an Offer in Compromise
  An offer in compromise allows you to settle your taxes for far less than the total amount owed. This is not an easy filing and is typically rejected by the IRS. Do not use this as a stalling mechanism because it can get you in more trouble than you are already in. If you want to consider this option it is a good idea to talk with a qualified bank levy professional (like our company) to decide if this would be right for you.

Generally speaking, it is more difficult to get a bank levy released than a wage levy. It can still happen, but you must take the right steps which often times means hiring a tax professional who can help you with this situation.

The best thing to do if the IRS places a levy on your account is to request a hearing and hire an experienced tax professional.

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