IRS Bank Levy | How to Release an IRS Bank Levy | Flat Fee Tax Service
Updated: Nov 22, 2019
What if I Get an IRS Levy Against One of My Employees, Vendors, Customers, or Other Third Parties?
An IRS bank levy authorizes the IRS to legally seize your property to satisfy a tax debt. The IRS can and will garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
If you receive an IRS bill titled Final Notice of Intent to Levy and Notice of Your Right to A Hearing, you should call the tax professionals at Flat Fee Tax Service right away.
When the tax levy is on a bank, credit union or similar account, the Internal Revenue Code provides for a 21-day waiting period before the bank must comply with the IRS levy. The waiting period allows the taxpayer time to contact the IRS and arrange to pay the tax or notify the IRS of errors in the levy.
You have 21 days. That's it. This includes Saturdays, Sundays and holidays. You will need an experienced Tax Attorney if you want any chance at keeping your money.
Generally, IRS levies are delivered via U.S. mail. The date and time of delivery of the levy is the time when the tax levy is considered to have been made. This means funds in the account are frozen as of the date and time the levy is received. Normally, the IRS bank levy does not affect funds deposited to the account after the date of the tax levy.
If a release of the IRS bank levy is not received within 21 days of receipt of the tax levy, funds in the account as of the date and time the IRS bank levy was received must be sent to the IRS. Follow the instructions on the levy form for remitting levy payments.
The IRS Levy forms include a "Total Amount Due." This amount is calculated through the date shown below the total amount due.
Interest and any applicable penalties will continue to accrue after the date shown. To get an updated payoff figure, the person who owes the tax liability or Tax Attorney, will need to contact the IRS. This information cannot be released to the employer.
STOPPING THE BANK LEVY IS ONLY THE FIRST STEP. tHE NEXT STEP IS TO HAVE YOUR TAX DEBT SETTLED.