Jay Freeborne

by Jay Freeborne, Enrolled Agent

  1. If you have a levy on your bank account, it's a 21 day freeze. The funds don't get sent to the IRS until day 21 or if you present a compelling argument to them to release the levy within that time.
  2. You can make deposits into your account AFTER you have been levied and those funds will be available to you. In other words, the IRS does not collect all deposits after the levy. The levy is a one-time event not "permanent."
  3. If you want to explore a levy release, two important things: a. call your Bank and get a fax number for their levy/legal department. b. Get a screenshot of the levy showing the amount held by the levy.
  4. Make sure that it is an IRS levy! State agencies also levy bank accounts.
  5. Your bank statement might show that you are in the negative -$100,000.00 from your levy but that is likely just an apparition as it's just showing how much in taxes you owe when in actually you are in the negative -$500.00.
  6. The IRS usually does not issue levies in the month of December. But they could issue a levy by mail on November 30th that strikes on December 4th.
  7. If you are a business that has received a bank levy for unpaid 941 taxes, the IRS doesn't want to punish your employees and will almost always release bank levies to pay your employees. Just be sure to get their names and paycheck amounts of your employees on a readable list.
  8. From January 2016 to July 2018, the IRS suspended all levies from ACS or the division that sends you letters. They just didn't have the staff to deal with the phone calls.

Accounts receivable levies and wage garnishments are also covered in the WATAX blog.

Registered members of the National Association of Enrolled Agents.

Call and talk with a tax expert for free:
(888) 282-4697

or email us now