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How do I stop an IRS bank levy?

Asked 37 timesCategory: liens-levies

An IRS bank levy freezes the funds in your bank account and sends them to the IRS after 21 days.

How It Works

  1. The IRS sends a levy notice to your bank
  2. Your bank freezes the funds (up to the amount owed)
  3. You have 21 days before the bank sends the money to the IRS
  4. Deposits after the levy date are not affected by that specific levy

How to Stop It

Before the 21 Days Are Up

  • Pay the balance in full
  • Set up an installment agreement: Contact the IRS immediately
  • Request Currently Not Collectible status: If you can prove hardship
  • Submit an Offer in Compromise
  • Prove the levy is causing economic hardship: The IRS must release it

Request a Collection Due Process Hearing

If you received a Final Notice (Letter 1058/LT11), you have 30 days to request a CDP hearing, which stops the levy.

After the Levy

If the money was already sent to the IRS, you may still be able to get it back if the levy was improper or caused undue hardship.

Important Disclaimer

This information is for educational purposes only and does not constitute tax or legal advice. Consult a qualified tax professional for advice specific to your situation.

Sources

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This information is generated by AI for educational purposes only and is not tax, legal, or financial advice. AI-generated answers may contain errors. Always verify information with a qualified tax professional or the IRS directly. AI Tax Relief is not affiliated with the Internal Revenue Service.