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What is a Bank Levy?
A Bank Levy is used when a delinquent taxpayer ignores notices to pay past due taxes
A Bank Levy is when the IRS freezes the money in your bank or financial account. It attaches to the money in the account at that moment. The money is ‘frozen’, usually for 21 days and then released to the IRS. Once the money is released it is very difficult to recover. And, be prepared for your bank to charge you $135 for the privilege of having your account levied.
A Bank Levy is used when a delinquent taxpayer ignores notices to pay past due taxes. Once the IRS sends a ‘notice of intent to levy’ the next move is a bank levy, or wage garnishment. You have 30-days to file an appeal to the final notice. A Bank Levy is an extreme action to get your attention. And it works. Releasing a bank levy can be accomplished a few different ways. One way is to show your money is needed for living expenses, or to maintain a business. The form to use can be found at: https://www.irs.gov/pub/irs-pdf/f433a.pdf.