IRS Bank Levy FAQs

An IRS bank levy is a legal seizure of property, including funds from bank accounts, to satisfy a tax debt.

The IRS may levy a bank account when:
(1) the IRS assessed the tax and sent you a Notice and Demand for Payment
(2) the tax was unpaid
(3) the IRS sent a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days before the levy
(4) the IRS sent advance notification of Third Party Contact notifying the IRS may contact third parties regarding the determination or collection of tax liability.

The IRS may levy your bank account if taxes are unpaid and arrangements are not made to settle the unpaid taxes.

It depends. The IRS will determine the levy amount based on factors like filing status, the number of dependents you may have, and other factors.

Yes. Upon receipt of a notice of intent to levy from the IRS, you may request a hearing to ask for a payment agreement.

A portion of your waves and income is exempt from the levy. The amount will depend on factual circumstances including your filing status, number of dependents, and other factors. Generally, the IRS cannot levy your bank account if they agree seizure of property would result in your inability to meet basic, reasonable living expenses.

Generally, no. The IRS is required to give you notice of a levy. However, the IRS may send you notice to your last known address. It is crucial you maintain current address information so you receive proper notice of a potential levy action and can respond appropriately. In certain circumstances the IRS is legally permitted to garnish wages without warning such as when the collection of the tax is in jeopardy.

Generally, no. The IRS is required to give you notice of a levy. However, the IRS may send you notice to your last known address. It is crucial you maintain current address information so you receive proper notice of a potential levy action and can respond appropriately. In certain circumstances the IRS is legally permitted to garnish wages without warning such as when the collection of the tax is in jeopardy.