IRS Bank Levy
Has the IRS filed a levy with your bank, leaving you unable to pay your bills, your rent or mortgage, your car payment or the ability to feed your family? When you owe the IRS, they want your attention, often times this comes at quite an expense for you.
Locating the bank or other financial institution is not difficult for the IRS. They can do a search on Social Security numbers and turn up quite a bit of information on a taxpayer, from banking institutions, to property, stocks and bonds, etc.
You only have 21 days from the date that the Bank or Institution received the levy notice to stop the levy with a release.
Seizure of your bank account is the ultimate action in their collection efforts. The IRS sends a Notice of Levy to the financial institution informing them that you owe taxes. The IRS requires them to freeze all the money in your account(s) as of that day. This includes all accounts with your social security number. You are then unable to use any of those funds to pay your bills. This freeze may cause your checks to bounce and overdraft fees accumulate. The bank must hold these funds for 21 days. At the end of that period, the bank must remit the funds to the IRS.
This 21 day period allows us time to negotiate with and encourage the IRS to release the funds from levy. After the 21 day period, the bank sends the money to the IRS and its gone!