Assessment and Notice
The IRS assesses your tax liability and sends a CP14 notice demanding payment. This is followed by additional reminder notices (CP501, CP503).
An IRS bank levy is a legal seizure of funds held in your bank account to satisfy an unpaid tax liability. Under IRC §6331, the IRS has broad authority to levy property — including bank accounts, wages, retirement accounts, and other assets — when a taxpayer fails to pay a tax liability after receiving proper notice and demand.
When the IRS issues a bank levy, it sends Form 668-A(C)(DO) (Notice of Levy) directly to your bank. Upon receiving this form, your bank is legally required to freeze the funds in your account up to the amount of the levy. The bank then holds those funds for a 21-day holding period before remitting them to the IRS.
This 21-day window is crucial — it is your opportunity to act.
You may be facing a bank levy if:
Many taxpayers confuse a bank levy with a tax lien, but they are fundamentally different:
Think of it this way: a lien says “we have a claim.” A levy says “we’re taking it now.”
It’s also important to note that a bank levy is a one-time action — it seizes the funds in your account at the moment the levy is processed. It does not automatically capture future deposits. However, the IRS can (and often does) issue successive levies, effectively creating an ongoing seizure of your funds.
Here is the step-by-step process the IRS follows before and during a bank levy:
The IRS assesses your tax liability and sends a CP14 notice demanding payment. This is followed by additional reminder notices (CP501, CP503).
The CP504 is the final balance-due notice in the standard sequence. It explicitly warns that the IRS intends to levy your state tax refund and may levy other property, including bank accounts.
At least 30 days before levying, the IRS must send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This notice, typically the LT11 or CP90, gives you 30 days to request a Collection Due Process (CDP) hearing under IRC §6330. This is your most important deadline. Requesting a CDP hearing stops the levy while your case is reviewed.
If you don’t respond within 30 days (or your CDP hearing doesn’t result in a resolution), the IRS sends Form 668-A to your bank. The IRS typically knows where you bank because financial institutions report interest and other payments on Forms 1099 and other information returns, and your past returns and payments show where you bank.
Your bank freezes the funds in your account (up to the levy amount) and notifies you. During these 21 days, you cannot access the frozen funds, but the bank has not yet sent them to the IRS.
After 21 days, unless the levy is released, your bank sends the frozen funds to the IRS. The money is applied to your outstanding tax liability.
Not all money in your bank account can be seized. Under federal and state law, certain funds are partially or fully exempt from IRS levy:
If the IRS has levied funds that include exempt amounts, you or your representative must notify the IRS and provide documentation to establish the exemption.
There are several strategies for getting a levy released during or after the 21-day holding period:
Under IRC §6343(a)(1)(D), the IRS must release a levy if it determines that the levy is creating an economic hardship — meaning you cannot meet basic, reasonable living expenses. You’ll need to provide financial documentation (bank statements, bills, pay stubs) to prove hardship.
If you negotiate an installment agreement, Offer in Compromise, or Currently Not Collectible status with the IRS, the levy will be released as part of the agreement.
If you’re still within the 30-day window from your Final Notice, requesting a Collection Due Process hearing under IRC §6330 bars the IRS from levying for the periods covered while the hearing is pending. It does not by itself release a levy that has already been served.
If the tax was already paid, the assessment was made in error, or the IRS failed to follow proper notice procedures, the levy can be released.
Obviously, paying the full amount owed immediately resolves the levy — but this is rarely practical for taxpayers who are already in financial distress.
If the balance is from a joint return and you qualify for innocent spouse relief, the levy may be released as to your share.
You have 21 days before frozen funds are gone. Our team acts immediately to initiate levy release procedures, often within 24–48 hours of your call.
We identify all exempt funds in your account and ensure the IRS does not seize money it’s not entitled to take.
We prepare and present a compelling hardship case using IRS-accepted standards and forms.
Releasing the levy is just the first step. We establish a resolution plan — installment agreement, OIC, or CNC status — that prevents future levies.
We handle all contact with the IRS on your behalf, including speaking with Revenue Officers, calling the Practitioner Priority Service line, and filing the necessary forms.
Without a resolution plan, the IRS will simply issue another levy. We break the cycle permanently.
James, a self-employed electrician in Georgia, owed $38,000 in back taxes from 2019 and 2020. He had been making payments informally but never set up a formal installment agreement. When he missed two consecutive payments, the IRS issued a levy on his business bank account, freezing $22,400 — including $8,000 he needed for his mortgage payment due in 10 days.
James called Global Gate Tax Relief on day 3 of the 21-day holding period. Our team immediately filed Form 911 (Request for Taxpayer Advocate Service Assistance) citing economic hardship and contacted the IRS Revenue Officer assigned to the case. We demonstrated that the levy would cause James to default on his mortgage and potentially lose his home.
Result: The levy was released on day 9. We then established a formal installment agreement of $650/month, which the Revenue Officer accepted. James kept his home, kept his business operating, and has made every payment on time since.
We understand that bank levies are time-sensitive emergencies. Our team begins working on your case immediately — often the same day you call.
We have full authority to represent you before the IRS and negotiate directly with Revenue Officers.
Call 1-877-800-8180 for an immediate, no-obligation assessment of your levy situation.
We have successfully released hundreds of bank levies and helped taxpayers recover frozen funds.
We don’t just stop today’s levy; we resolve the underlying tax liability to prevent future collection actions.
Your bank is required to hold the frozen funds for 21 days before remitting them to the IRS. This 21-day window is your opportunity to negotiate a levy release. After 21 days, the funds are sent to the IRS and applied to your tax liability.
Yes. A bank levy is a one-time seizure of funds in your account at the time the levy is processed. However, the IRS can issue successive levies — and often does — until the balance is resolved. The only way to prevent future levies is to establish a formal resolution with the IRS.
Yes. Social Security benefits are not exempt from IRS levy: IRC §6334(c) limits exemptions to those listed in §6334(a), and Social Security is not among them. The IRS can take up to 15% of each payment through the Federal Payment Levy Program, and benefits deposited in your bank account can be reached by a bank levy. If a levy causes economic hardship, the IRS must release it once hardship is shown, and we help clients document that.
You can access any funds deposited after the levy was processed — the levy only applies to the balance at the time it was issued. However, the frozen amount remains inaccessible until the levy is released or the 21-day period expires and funds are sent to the IRS.
This is exactly the type of economic hardship that can justify a levy release under IRC §6343(a)(1)(D). Document every bounced check, late fee, and missed payment — this evidence supports your hardship claim.
You can try, but time is not on your side. Navigating IRS procedures, identifying the right person to contact, and presenting a proper hardship case within the 21-day window is extremely challenging without professional experience. A licensed tax professional can often expedite the process significantly.
If the IRS has levied your bank account — or you’ve received a notice that a levy is coming — you cannot afford to wait. Every day of the 21-day holding period that passes is one less day you have to save your funds.