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This isn't really a tax question as much as it is

Date: Wed, 05/04/2011 - 08:51

Submitted by sjj104
on Wed, 05/04/2011 - 08:51

Posts: 85 Credits: [Donate]

Total Replies: 5

This isn't really a tax question as much as it is


This isn't really a tax question as much as it is a banking question. I recently received a copy of an IRS levy on my bank account. After receiving the notice, I called the IRS and worked out a payment arrangement. Easy enough. The IRS agent I spoke with indicated there wasn't much he could do about the actual levy because it was probably already being processed. The notice was dated the 25th--I received it on the 30th and made arrangements on the 2nd. As of today, (4th), my account still hasn't been levied. Does anyone know how long it takes a bank to process a levy once they receive it? I was under the assumption that the IRS sends the copy to the taxpayer after sending it to the bank to keep the taxpayer from withdrawing funds prior to the levy. I'm in banking limbo until it happens.


I haven't had an IRS levy but have experience with other levies. In my experience the bank has to put a hold on your account immediately upon receiving the levy. You need to call the bank ASAP. If you have direct deposit you may want to turn it off and get a paper check that you can cash somewhere else, you won't be able to use your bank if they see the levy. However, once they get the amount they need the levy is released.


lrhall41

Submitted by J L B on Thu, 05/05/2011 - 08:24

( Posts: 329 | Credits: )


An IRS levy is a one shot deal--meaning, they take what you have in the account at the time the levy. If it's not enough, they can come back later...but the levy doesn't remain active until the balance is paid (like wage levies do). As it turned out, I found the answer to my own question today after talking to both the IRS and the bank. The IRS sent the Form 668 to the bank a week before they sent me the form 8519...and, for whatever reason, the bank still hasn't received it. They also haven't received the mailed release (which is to be expected given the other delay). However, the IRS was kind enough to fax it over to them this morning, so the release has been posted and when and if the levy arrives at my bank, it won't be processed.


lrhall41

Submitted by sjj104 on Thu, 05/05/2011 - 11:55

( Posts: 85 | Credits: )