If you’ve logged into your bank account and found funds frozen or missing, you may be dealing with an IRS bank levy.
That’s exactly how my first IRS Bank Levy client saw it happen. She called me. “The IRS just took my money all of a sudden”, she said. “How could they do this??” “Is this even legal?!?” She was scared and upset.
At ETS Tax Relief, we work with Virginia taxpayers who are blindsided by bank levies because they didn’t realize IRS collection had escalated. Unlike other creditors, the IRS does not need a court order to levy your bank account. Once it happens, time is short and you need to move quickly!
Difference Between IRS Lien and IRS Levy
What Is an IRS Bank Levy?
An IRS bank levy allows the Internal Revenue Service to legally seize funds from your bank account to satisfy unpaid tax debt.
How an IRS Bank Levy Happens
Bank levies typically follow ignored IRS notices, defaulted payment plans, or unresolved tax balances. Unfiled tax returns are one of the most common reasons the IRS escalates collection, because the agency cannot negotiate or offer relief until you are compliant.
How Long Does the IRS Freeze Your Bank Account?
When a levy is issued, banks generally freeze funds for 21 days before sending them to the IRS. This is a very precious 21 days! If you do nothing, the levy will stand, and your money will be sent to the IRS.
Can the IRS Take All the Money in Your Account?
In many cases, yes. The IRS can seize the available balance at the time the levy hits. The levy is applied to funds already in the account, and does not apply to future deposits. However, the IRS can issue a new levy to collect new funds.
Can an IRS Bank Levy Be Stopped or Reversed?
Possibly, but timing matters. Remember, the bank freezes the funds for 21 days. That’s not a lot of time when it comes to getting into a payment arrangement with the IRS. Payment options may include installment agreements, Currently Not Collectible status, Offer in Compromise, or levy release. Once the money is released to the IRS, there is very little chance you will get the money back.
How ETS Tax Relief Helps Virginia Taxpayers
ETS Tax Relief is a Virginia-based tax resolution firm helping taxpayers stop IRS enforcement and protect income. If you’ve received a notice threatening a levy, call us at 804.286.3277 or click here to schedule a call!
LuSundra Everett, EA is The Home Biz Tax Lady. She is a tax expert located in Chester, VA who will find the right solution for you! As an Enrolled Agent licensed through the Internal Revenue Service, LuSundra is authorized to represent taxpayers in all 50 states against the IRS and your state!
Through her work with ETS Tax Relief, she helps high income non-filers and small-business owners face the IRS with confidence, clarity, and a plan.
When you’re dealing with IRS letters, tax debt, or business tax issues, the right representation makes all the difference. At ETS Tax Relief, we work with individuals and business owners across Virginia to resolve tax problems, prevent future issues, and restore peace of mind.
If you’re ready to put your tax troubles behind you, visit http://www.etstaxrelief.com to learn more about how we can help.
