If the IRS Levies my Bank Account, Can I Stop It?

The IRS is coming for your Money! If you’ve been avoiding those letters from the IRS, then you probably missed the one called “Final Notice of Intent to Levy and Notice of Your Right to a Hearing”. If you did, then you probably don’t know that the IRS is getting ready to forcibly take the money that you ‘owe’ right out of your bank account.

Yes it is true! The IRS has the right to get the money that you owe in back taxes. While they have several ways to do this, their favorite by far is freezing your bank account and taking the money from there. You have to act fast… you only have 21 days after your account is frozen to appeal the bank levy.

Million dollar question… Can you stop an IRS Bank Levy? Once you receive that final notice, the IRS is going to get their money unless you take action immediately. If you think the amount owed is in error, you will have to prove it. As far as the IRS is concerned you are guilty until proven innocent.

Request a Hearing. Immediately fill out a form requesting for a Collection due Process Hearing (Publication 1660). This will slow down the Bank Levy. Hopefully you did this before the account was frozen. The hearing will determine if the IRS’s collection process is appropriate.

The Hard Truth. In many cases, you won't even get a notice from the IRS, because the IRS has a the wrong address on file for you! Unfortunately, I commonly hear from taxpayers that their banks were levied without ever hearing a peep from the IRS first. You have 21 days after the bank levy takes to prove that you will go through extreme financial hardship. After that, the money the IRS froze is gone forever!

What if it's too late? In most cases, a bank levy will not satisfy your entire tax debt. The IRS can continue to come after any financial account of yours that it finds, and often attacks several simultaneously! The only real way to keep the IRS from attacking your accounts is to get a suitable Tax Resolution for your situation. I advise most taxpayers to enter into an Installment Agreement. This works for most situation. If you owe more than $10,000, however, get help from a reputable tax professional. The IRS will try to pressure you into unaffordable payments. A real licensed professional doesn't speak with the IRS representatives on the phone. He or she talks directly to the managers, and gets real solutions fast!

Hurry Up! Take it from a former IRS-Hitman… If you owe the IRS money, or even if they say you do and you are disputing it, contact them ASAP! You don’t want them to just take your money. I have personally levied bank accounts including: 401k, CD’s for kid’s college funds, and even savings bonds! Trust me, the IRS will leave a person in complete financial ruin because they failed to respond.