How Long Can the IRS Freeze A Bank Account? | Flat Fee Tax Service
Updated: Nov 22, 2019
IRS Levy Release - Tax Garnishment - IRS Bank Levy In the unfortunate event that you do not pay your taxes or go into debt with the IRS, the agency can seize your finances and assets.
One of the most common ways the IRS does this is with a bank levy. An IRS bank levy is a seizure order by which the IRS freezes your bank account and eventually takes funds to cover the money you owe. This can be a terrifying and stressful experience, but with help from tax professionals, you can get a bank levy release quickly and efficiently.
HOW DO YOU STOP AN IRS BANK LEVY?
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If the IRS has sent you a Final Notice of Intent to Levy, you have 30 days to request an appeal or CPD hearing.
Taking one of these two actions will buy you some time to find a resolution with the IRS. If you don’t act quickly, the IRS can come after your account funds and property. Typically the very first thing the IRS will do is freeze your bank account and take the funds after a short period. If you don’t have enough funds in your account to cover your debt, the IRS may come after your wages and property as well.
Bank Levy Release
If you fail to reach an arrangement within the 30 days of notice from the IRS, the bank levy will take effect. The funds in your account will be frozen and set aside by the bank for 21 days.
On the 22nd day, the bank must send the frozen funds to the IRS. It’s extremely important that you take action in this 21-day period and seek out a bank levy release. You can resolve this by contacting a tax professional or the IRS directly. Getting a bank levy release is difficult but not impossible for an experienced IRS Tax Attorney. Once the 21 day period is over and the IRS has confiscated your funds, it is incredibly difficult to get them back. Don’t wait until the last day to seek out a bank levy release with the help of a tax professional. The process can take a few days. This kind of IRS levy will not affect other deposits into your account. Unless your wages are being garnished by the IRS as well, your check and cash deposits will remain untouched by the IRS.