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My bank account has been levied. What can I do?

What to do about levied bank account?

  • I checked my bank account this morning online and found I was overdrawn. When I called the bank I found out the IRS had levied my money. I was advised to call the IRS and plea my case, and tell them the money has already gone to bills. Is this good advice? Will it be successful? Please, any comments are appreciated.

  • Answer:

    Waiting until the firing squad has lined up and fired is procrastinating too long. The money has not already gone to pay bills; you have now written a batch of checks that are going to bounce because there is no money in your account. You may be able to negotiate an installment agreement with IRS and get a partial release but you have to make the call to 800-829-7650. Before you do, ask the bank what the fax number is to the department that is handling the levy and have it ready.

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Other answers

Start by kicking yourself in the head for ignoring the dunning notices that you've been receiving over the past several months. The IRS never levies a bank account unless you have been ignoring them completely. The money is gone and the odds of getting it back from the IRS are slim. You can get on a payment plan for whatever debt remains and the IRS will release the levy. The IRS generally only reverses a levy if it was in error in the first place or in cases of extreme hardship. (Unfortunately not being able to make bills for the next couple of weeks doesn't normally rise to the level of extreme hardship.)

Bash Limpbutt's Oozing Cyst©

You will receive a notice in about 30* days advising you what they took the money for. They will not send any of that back regardless of how compelling your argument may be. You should contact the people that you paid and advise them that the checks are going to be rejected by the bank because of an IRS action. Change banks or stop using banks altogether until you resolve the IRS situation as they will continue to take any funds they identify.

Mathew

You should have received a notice of this happening. Did you not get it? The bank holds the money for 21 days just in case of a reversal or you prove you need that money for necessary bills, after that, it's the IRS'. Get your financial papers in order to prove you need the money to survive this month. The IRS is more sympathetic to rent, mortgage, car payment, but not credit card, cable, internet, cell phone, etc.

Jesse

You owed IRS and have not taken care of it by requesting an installment agreement. So now you want IRS just to give you back what you owed them Not a good idea to ignore IRS. What makes you think IRS will believe you that you already paid bills, if you are not making an effort to pay them. good luck

Ms. Angel..

What, did you think those notices you were getting from the IRS were a joke? Did you think they were just kidding about taking your money? As the ant said to the grasshopper, "a lack of responsibility on your part does not constitute an emergency on mine."

Dr. Snark

Not a chance. You ignored the IRS and now they will ignore you. By the way, if you deposit more money in that bank they'll take that too until you pay up in full.

Chas

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