A bank levy is when your bank account is frozen and all or part of the funds in your bank account are seized. Bank levies can occur for a variety of reasons, the two most common causes being unpaid taxes and unpaid debt. A bank must wait 21 calendar days after a levy is served before remitting payment. Then, on the following business day, it must release the taxpayer's money to the IRS. A bank levy just doesn't happen immediately; usually it is the result of IRS collection methods to force a debtor to repay a tax debt. If the IRS has sent you a letter stating that you owe taxes, and you either refuse to pay the debt, or don't respond to their requests to enter a repayment plan, a common tool they will use is to issue a levy on your bank account. They will freeze your accounts and seize any money in your account up to the amount that you owe. They can go after almost any type of bank account (e.g. savings, checking, etc) and while most levies occur in the US, the IRS or other creditors can sometimes attach off-shore accounts as well. Once a bank levy is made on your account, any money that is in the account will be seized. If there is not enough money in the account to satisfy the IRS liability, all money will be removed and your account will generally remain frozen until the debt is paid off.
Our team of experienced tax representatives can help with IRS levy release and solve other tax problems! All you have to do is initiate the first step towards a debt-free life!