Subscribe to our free newsletter for tax tips and financial advice!

Bank Levy

Bank LevyThe IRS and state may collect unpaid taxes from unsuspecting taxpayers by issuing a bank levy to their banking institution. A bank levy is a seizure of the money in the taxpayer's bank account. Before a bank levy, the IRS will issue multiple notices to the taxpayer for payment. If no action has been taken by the taxpayer, the IRS will issue the bank levy 30 days after the final notice. Once the bank receives the letter, they must freeze your account and wait 21 days before sending the full amount to the IRS. It is important to call The Taxperts to stop a bank levy before the 21 day holding period.