Tax Help Hawaii

Release an IRS Bank Levy

Has the IRS Levied Your Bank Account? Act Quickly.

If the IRS has levied your bank account, time matters.

An IRS bank levy can freeze funds in your account and potentially result in that money being sent to the IRS to satisfy unpaid tax debt.

Tax Help Hawaii helps taxpayers facing IRS bank levies, back taxes and other serious IRS collection problems. We can review your situation, communicate with the IRS when authorized, and determine whether there may be grounds to request a release of the bank levy.

Call NOW for Your FREE Tax Relief Consultation
Call Tax Help Hawaii: 310-966-0266

What Is an IRS Bank Levy?

An IRS bank levy is a collection action that allows the IRS to seize funds held in a taxpayer’s bank or financial account to satisfy unpaid federal taxes.


When a bank receives an IRS levy, it generally identifies the funds available in the account at that time and holds the affected amount before sending it to the IRS.


This holding period can provide an important—but limited—opportunity to address the levy before the money is transferred.

If your bank has notified you that your account has been levied, contact Tax Help Hawaii as soon as possible.

How Long Does a Bank Hold Money After an IRS Levy?

For a typical IRS bank levy, the bank generally holds the levied funds for 21 days before sending them to the IRS.

That period exists to allow time for certain issues to be resolved.

However, you should not assume that the levy will automatically be released during those 21 days.

If you believe the levy is incorrect, is causing qualifying economic hardship, or should be released for another reason, acting quickly is extremely important.

Can an IRS Bank Levy Be Released?

Depending on the circumstances, yes, an IRS bank levy may be released.

Whether the IRS will release a levy depends on the facts of the individual case.

Possible reasons or resolution strategies may include:

  • The tax debt has been satisfied or otherwise resolved
  • The levy is creating qualifying economic hardship
  • An appropriate IRS Installment Agreement is established
  • The levy was issued improperly
  • Applicable IRS collection procedures were not followed
  • The IRS determines that releasing the levy may facilitate collection
  • Another qualifying tax resolution is available

A levy release does not necessarily eliminate the underlying tax debt. That is why Tax Help Hawaii looks beyond the immediate bank levy and works to identify an appropriate resolution for the tax problem itself.

IRS Bank Levy Rules & Notices

Before the IRS can generally levy a taxpayer’s property, certain collection procedures must occur.

These commonly include:

The IRS assesses the tax liability

The IRS sends a Notice and Demand for Payment

The taxpayer does not fully pay the amount owed

The IRS issues the required Final Notice of Intent to Levy and Notice of Your Right to a Hearing

The applicable notice period expires

The exact rules, notices and exceptions can depend on the circumstances. If you've received an IRS collection notice, don't wait until your bank account is already affected before seeking help.

FAQ's

Frequently Asked Questions

What If I Never Received the IRS Levy Notice?

IRS notices are generally sent to the taxpayer’s last known address according to applicable IRS procedures.

That means simply not seeing or opening a notice does not necessarily prevent IRS collection action.

If you recently moved, have not been receiving IRS correspondence, or discovered a levy without understanding why it happened, Tax Help Hawaii can help review your IRS account and determine what collection activity has occurred.

An IRS bank levy and an IRS wage levy work differently.

A bank levy generally attaches to funds available in the affected account when the levy is received by the bank.

A wage levy, on the other hand, can generally continue to affect future paychecks until it is released or the underlying collection matter is otherwise resolved.

If the IRS is levying your paycheck rather than your bank account, visit our IRS Wage Garnishment & Wage Levy Help page.

What Should You Do If Your Bank Account Is Levied?

Don’t ignore the levy or assume that nothing can be done.Contact Tax Help Hawaii and let us review:

  • The amount you owe
  • Your IRS account and collection status
  • The levy and applicable notices
  • Your income and necessary living expenses
  • Your assets and financial circumstances
  • Your tax filing compliance
  • Available IRS resolution options

The sooner the situation is reviewed, the more time there may be to determine whether action can be taken before the bank sends the levied funds to the IRS.

Resolve the Tax Problem Behind the Bank Levy

Releasing a levy is only part of the solution.

If the underlying IRS tax debt remains unresolved, additional collection activity may occur.

Depending on your circumstances, potential tax resolution strategies could include:

IRS Installment Agreement

Offer in Compromise

Currently Not Collectible / Hardship Status

Resolving unfiled tax returns

Penalty relief when applicable

Other appropriate IRS tax resolution strategies

Our goal is to help address both the immediate IRS collection problem and the underlying tax debt.

Let Tax Help Hawaii Deal With the IRS

For qualifying representation matters, Tax Help Hawaii can communicate with the IRS on your behalf under a valid Power of Attorney.

We can review the status of your tax account, determine what collection actions have occurred, evaluate possible levy-release options, and help develop a strategy for resolving your tax debt.

Tax Help Hawaii has been helping taxpayers address serious IRS and State tax problems since 2009.

Get IRS Bank Levy Help Today

If the IRS has levied your bank account, don’t wait until the funds have been sent to the IRS to ask for help. Let Tax Help Hawaii review your situation and explain the options that may be available.

Call Tax Help Hawaii: 310-966-0266

Serving Maui, Hawaii and taxpayers nationwide with qualifying federal IRS tax matters.

Schedule Your FREE Tax Relief Consultation

IRS levy releases and tax resolution outcomes depend on each taxpayer’s individual circumstances, eligibility and applicable IRS rules. Results are not guaranteed.