Bank Levies & Wage Garnishment Release Services
Bank levies and wage garnishments are two common ways that the IRS can collect a tax debt from individuals and businesses. In most cases, you can prevent a levy or garnishment by taking a proactive approach toward squaring your tax debt. But before you can do that, you have to understand what is happening and what options you have as a taxpayer.
What Is an IRS Bank Levy?
Simply put, an IRS bank levy occurs when the IRS seizes money directly from your financial accounts to help satisfy a tax debt. It is one of the most aggressive collection tactics the IRS can take and can cause serious financial difficulties for you and your family.
The IRS issues bank levies to taxpayers who owe an outstanding tax balance and fail to pay off their debt within a certain timeframe — or at least set up a formal arrangement with the IRS to resolve the balance.
Prior to the IRS sending you an official Notice of Levy, the following must occur:
- The IRS sends you a Notice and Demand for Payment.
- You fail or refuse to pay the amount owed.
- The IRS sends you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy takes effect.
- The IRS sends you a notification of Third Party Contact informing you that the IRS may contact third parties to determine and collect your tax debt.
Once the levy is enacted, your bank will hold the funds requested by the IRS for 21 days. During this time, you will not be able to access the money in your bank account. Once that period has elapsed, they will send the money you owe to the IRS — while also charging you a processing fee for doing so.