IRS Bank Levy Release

The IRS took all the money from my bank account without warning. How is that possible?

The IRS actually did warn you. They're required to send a Final Notice of Intent to Levy at least 30 days before they take action. If you didn't receive it, it likely went to an old address or got lost in the shuffle. That said, the IRS does sometimes send erroneous levies, and banks don't always handle them correctly either.

Either way, there are options. Call me and I'll pull your IRS transcripts to see exactly what happened and figure out the best path forward.

How quickly can you get my money back?

I've had levies released in under an hour. That's not typical, but it's possible. In most cases, if you contact me right away, I can get the levy released within 24 hours.

I'll be honest with you: each case is different, and I make no guarantees that I can get your money back. But I've been doing this for 15 years and I know what works. The biggest factor is how quickly you reach out.

Can the IRS levy my bank account more than once?

Yes. A bank levy isn't continuous like a wage garnishment, but the IRS can issue new levies whenever they want. If you're self-employed, this is especially common because you don't have wages to garnish.

The only way to stop it for good is to resolve the underlying tax debt. That's what I do. Whether it's a payment plan, an Offer in Compromise, or hardship status, I'll find the right solution for your situation.

Can the IRS take money from a joint bank account if only one spouse owes?

Yes — and this is one of the more frustrating aspects of bank levies. If the levy is issued against a joint account, the bank will typically freeze the entire account, even if only one account holder owes the debt. The non-liable spouse can request their portion be released, but it requires filing paperwork and proving which funds belong to them.

If you're married and only one spouse has a tax debt, it's worth taking proactive steps before a levy occurs. Call me and I can help you understand your options.

Can I prevent the IRS from levying my bank account again in the future?

The only sure way to prevent future levies is to resolve the underlying tax debt. Once you're in a formal agreement with the IRS — whether that's an installment agreement, Offer in Compromise, or Currently Not Collectible status — the IRS is prohibited from issuing new levies as long as you stay in compliance. Getting into a resolution agreement is the goal, and releasing the current levy is often the first step.

Can the IRS levy my retirement accounts (401k, IRA)?

The IRS can levy retirement accounts, though it's relatively uncommon for typical collection cases. They're more likely to target bank accounts with liquid cash first. When they do levy retirement funds, the 10% early withdrawal penalty is waived (it's considered an involuntary distribution), but you'll still owe income tax on the distribution. If you're concerned about your retirement accounts being at risk, contact me before it happens — prevention is much easier than recovery.

Can state tax authorities levy my bank account too?

Absolutely. State tax authorities have their own levy powers, and some states are even more aggressive than the IRS when it comes to seizing bank funds. States like California, New York, and Massachusetts regularly issue bank levies for past-due state taxes. The release process varies by state and can be more difficult than dealing with the IRS. If a state tax authority has levied your bank account, call me right away — the timelines are often shorter than the IRS's 21-day hold.