How many times may the Internal Revenue Service (IRS) levie your bank account? The Internal Revenue Service has the authority to levie a bank account more than once. A levy issued by the IRS is not a permanent levy, which means you can deposit money the next day. Once the bank has processed the tax levy, an IRS bank levy is placed on the cash.
How long does an IRS bank levy stay on your account?
An IRS bank levy is normally imposed for a one-time withdrawal from your bank account, after which the money are held by the bank for 21 days before being forwarded to the Internal Revenue Service. The rationale for the 21-day period is straightforward.
What should I do if I get a bank account Levy?
In addition, it is important to understand that an IRS bank levy requires your bank to keep the levied monies for a minimum of 20 days before delivering them to the IRS.This provides you with a window of opportunity to contact the IRS and negotiate the release of the levy, as well as the restoration of the monies to your account.If you have received a bank account levy, the Internal Revenue Service is attempting to gain your attention.
What is an IRS bank levy?
An IRS bank levy attaches solely to funds in your account at the moment your bank executes the levy, not to monies in your account before then. Once the tax has been completed, any future deposits that you make are not subject to the levy anymore. If you have $200 in your account at the time of the levy, your bank will take that amount from your account.