Leatherneck BookkeepingCall (208) 614-1965IRS froze your bank account? Act inside the 21 days.
When the IRS levies a bank account (Form 668-A), the bank freezes the money and generally holds it for 21 days before sending it to the IRS. That window is the time to act.
What happens with an IRS bank levy
A bank levy takes what's in the account on the day the bank receives it. Unlike a wage levy, it is a one-time levy, but the IRS can send another. Self-employed people may also see levies on money their customers owe them (accounts receivable).
Ways a levy may be released
- Paying the balance or setting up an approved payment plan
- Showing the levy causes an economic hardship
- Showing the levy was issued in error or after the collection period ended
- Appeal rights, if you're still inside your deadlines
- Free call. Tell us what letter you got or what's being taken.
- Form 8821. You sign it, and we pull your IRS transcripts so we can see exactly what the IRS sees: balances, years, unfiled returns, and notices.
- A plan in plain English. We explain your options (payment plan, hardship, penalty relief, filing missing returns) and what the IRS will need from you.
- We prepare the paperwork with you: financial statements, missing returns, and letters.
- We get on the phone with you. When you call the IRS, we join the call and help you. You speak for yourself, and we're right there.
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Call (208) 614-1965Request a free consultationCommon questions
How long does the bank hold the money?
Generally 21 days after receiving the levy, then it sends the funds to the IRS. Call us right away.
Will the IRS take money deposited later?
A bank levy generally attaches to the funds in the account when the bank receives it, but the IRS can issue new levies. A resolution plan is what stops the cycle.
Can you get my money back?
Sometimes levied funds can be returned, for example if the levy was wrongful or caused a hardship, but it isn't guaranteed. We'll look at your transcripts and tell you honestly.
Can the IRS levy my bank account and my paycheck at the same time?
Yes. The IRS can use more than one levy at once. A wage levy keeps going every payday until it's released; a bank levy takes what's in the account the day the bank gets it. Source: IRC § 6331(e); IRS 'How do I get a levy released?'
Will my employer find out?
Yes. A wage levy is sent to your employer, who has to follow it. A bank levy goes to your bank, and your employer isn't told. Getting on a plan before a wage levy is the best way to keep it private. Source: IRS Form 668-W
Can the IRS take my Social Security, VA benefits or unemployment?
Social Security: yes, the IRS can take up to 15% of each payment through the Federal Payment Levy Program. VA service-connected disability, unemployment benefits and workers' compensation are exempt from IRS levy by law. Once benefits are deposited, money in a bank account may still be reachable, so call before it happens. Source: IRC § 6331(h) and § 6334(a)(4), (7), (10)
How fast can a levy be released?
The IRS has to release a levy in certain cases, for example when it causes an economic hardship (you can't pay basic living expenses), when you set up a payment plan whose terms don't allow it, or when the debt is paid. A release can happen quickly once the IRS has your financial information, but we can't promise a timeline. Have your employer's or bank's fax number ready. Source: IRC § 6343; irs.gov 'What if a levy is causing a hardship'
Can the IRS take my spouse's pay?
Only if your spouse also owes, for example on a joint return. If the debt is yours alone (say, from before you married or a separate return), the IRS shouldn't levy your spouse's wages, but money in a joint bank account can be levied. Community-property states have special rules. If your spouse's debt landed on you, ask us about Innocent Spouse or Injured Spouse relief. Source: IRS Publication 971; IRS Form 8379
Related help
Leatherneck Bookkeeping is not a law firm and does not represent clients before the IRS or any state tax agency. With your signed IRS Form 8821, we can pull your IRS transcripts and receive copies of your IRS notices. When you call the IRS, we join the call and help you, but you speak for yourself. Results depend on your facts and IRS rules; no outcome is guaranteed.