IRS Bank Levy.

How a bank levy works

Before levying, the IRS must assess the tax, send a bill, and send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy. When the bank receives a levy, it freezes funds in the account up to the amount owed as of that day and must hold them for 21 days before sending them to the IRS. A bank levy takes what is there that day; it does not attach to later deposits unless a new levy is issued.

Your appeal rights

• Collection Due Process (CDP) hearing: request it with Form 12153 within 30 days of the final notice. A timely request generally stops levy action for those periods while the hearing is pending, and preserves the right to go to Tax Court.
• Equivalent hearing: available within one year of the notice if you missed the 30-day window, but without the same protections.
• Collection Appeals Program (CAP): a faster appeal available before or after a levy.

Ways a levy may be released

• Paying the balance in full.
• Entering into an installment agreement, unless the agreement says otherwise.
• Showing that the levy creates an immediate economic hardship (you cannot meet basic living expenses).
• Showing the levy was issued in error, for example the tax was already paid or the period had expired.

Speed matters during the 21-day hold. Once funds are sent to the IRS, getting them back is much harder.

Documents to gather

• The levy notice from your bank and every IRS notice
• Recent bank statements
• Proof of income and monthly expenses (for a hardship or payment plan request)

Please don’t send Social Security numbers, bank details or tax documents through the website chat or forms. We’ll arrange a secure way to share them.

How fees work

We quote a flat fee after the free consultation, once we know what the work involves, and agree the scope with you before any work starts. Amounts owed to the agency, and any agency fees, are paid to the agency, not to us. No one can promise a particular result: the agency decides, and our job is to present your case accurately and on time.

Frequently asked questions

Official sources

• Taxpayer Advocate Service: Notice of intent to levy
• IRS: Collection due process (CDP) FAQs
• IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing
• IRS Publication 594, The IRS Collection Process
• IRS: Enforced collection actions

Last updated November 13, 2026 · General information, not tax or legal advice. Read the disclaimer.