Can the IRS seize a bank account? They can, and they do. Known as an IRS bank account levy, the IRS then can take funds in your bank account to cover your back taxes. The IRS contacts your financial institute concerning the tax debt, and then the bank freezes everything for 21 days from the date of the notice. If you do not pay what you owe during that three-week time frame, the bank allows the IRS to retrieve the funds.
IRS Bank Levy – What You Need to Know
The current funds are the only ones impacted by the levy. Once the bank levy is activated, future deposits are not affected, but they can issue another bank levy in the future. That seldom happens. A bank levy is typically the last step the IRS takes to retrieve what is owed.
Stopping A Bank Levy
The process can be stopped, but calling Mallari Tax is one of the first things you need to do. A quick response is needed, and we can help. Different options are available depending on your situation, but you can be assured that we know the right steps to take.
We can assist you with an IRS installment plan and when the IRS seize a bank account. Contact us today at (833) TAX-PEACE.