A recent case details what can happen when a bank does not immediately apply an Internal Revenue Service levy to freeze a bank account. The bank was on the hook for the amount that its customer withdrew.
When a taxpayer is unable to pay a tax bill, the IRS has various collection tactics. The agency can take money directly from your bank account or paycheck through a bank levy or wage garnishment. Here, the IRS notified a taxpayer that it intended to levy his bank account.