Release of IRS Bank Levy

What is a Release of IRS Bank Levy?

IRS Bank Levies are generally released when you pay off your tax debt. Depending on the situation, we can appeal and have the IRS release a levy. If the levy would create an extreme financial hardship for you, the IRS may hold off on collecting, but the debt will still exist.

Another common tactic occurs when the IRS contacts your financial institution and demands them to freeze the available funds in your account for a period of 30 days. We can assist you but you must call now! The longer you wait, the less likely it is to get a Bank Levy released.

An IRS bank account levy is when the IRS confiscated funds directly from your bank account to cover the back tax obligations you owe. Usually, the Internal Revenue Service calls your financial institution regarding your taxes owed. Next off, your financial institution must freeze your assets for 21 days from the day it receives the IRS notice. Consequently, if you don't take action throughout that time, the bank sends out all the funds to the Internal Revenue Service.


An Internal Revenue Service bank levy will just impact the present funds in the account. Actually, once your bank activates the bank levy, it will not impact any kind of future down payments. The Internal Revenue Service can release an additional bank levy later. However, this rarely happens.


The bank puts a hold or "freeze on the account" on the funds in the account. This is true even if it creates checks to be returned as well as overdraft account charges. The financial institution has to wait 21 days prior to sending the funds to the IRS. If the levy is not released during this moment, then the following day the funds will certainly be sent out to the IRS.


Normally, this is the last line of protection for the Internal Revenue Service. The IRS only uses this enforcement collection method after attempting to contact you several times without getting a reaction.


3 Requirements have to generally be met before the Internal Revenue Service will levy:

  • The Internal Revenue Service analyzed the tax and also sent you a Notice and also Requirement for Repayment
  • You neglected or rejected to pay the tax as well as
  • You were sent out a Final Notice of Intent to Levy as well as Notice of Your Right to A Hearing a minimum of one month before the levy.


They might provide you this notification face to face, leave it at your house or typical workplace or send it to the last known address they have on file, for you by licensed mail, return invoice asked for.


There are more qualifications but let us help you with that. Give us a call today at 800.987.3051 and we can start to take a look at your tax situation. 

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