Jump to Navigation
Over 30 Years of Experience handling tax controversies & tax disputes

Bank levies: How should you respond to a freeze on your account?

When the IRS freezes your bank account due to tax debt, it quickly makes your tax trouble especially urgent.

After all, you probably don't have cash stuffed in your mattress or gold hoarded somewhere in your house. An IRS levy against your bank account can therefore undercut your access to the money you need to meet your most basic needs.

How should you respond to a freeze on your account so that you can avoid an actual seizure of your funds? In this post, we will address that question.

The IRS cannot immediately take your account. Even if you have unresolved tax debt, a collection action aimed at your bank account starts not with a seizure of the funds, but with a freeze on them.

The IRS can put this freeze in place by issuing something called a levy to your financial institution. This levy, which comes in the form of a letter, puts a freeze on the account that lasts for 21 days. If you don't resolve the underlying debt within that time, your bank will have to hand your money over to the IRS.

But a skilled tax attorney can help you take steps to keep that from happening. It may be possible, for example, to work out a payment plan or negotiate an offer in compromise (OIC) for your tax debt that keeps you out of collections. It may even be possible to show that the levy was issued in error.

In short, an attorney can take quick, focused action aimed at obtaining a release of a bank levy. This can be done during the 21-day waiting period, before the IRS actually takes your funds.

No Comments

Leave a comment
Comment Information
Have a Question? Ask an Attorney:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Visit Our
Tax Law Website
Contact Information

Levins Tax Law, LLC
1671 Worcester Road, Suite 304
Framingham, MA 01701

Framingham Law Office Map

Levins Tax Law, LLC
38 Newbury Street, 6th Floor
Boston, MA 02116

Boston Law Office Map
By Appointment Only

Phone: 508-435-0118
Toll-Free: 888-333-9501
Fax: 888-333-0291