Wage levy

Bank levy

A bank levy only attaches to the funds in your account at the time the levy is received by the bank. It does not affect deposits made afterward. Of course this is little consolation since you probably have outstanding checks that will likely bounce if the bank levy is not lifted.  The good news is - the money is not gone yet. By law, the bank must hold the money for 21 days before releasing it to the IRS. This gives you time to work out some arrangement with them and hopefully, get the levy released.

Customer levy

This type levy generally only attaches to the specific property or rights to property existing at the time the levy was received. For example, if the levy is on a customer, the levy only attaches to any outstanding invoices at the time the levy was served. Invoices received even hours later are not affected. However as a practical matter, your customer will be very cautious about paying you until the matter is resolved. The bottom line is - IRS collections must be suspended!

The levy document itself will indicate which office issued the levy. You will need to contact the person or office identified on it. This will be a Revenue Officer or Automated Collections. When you call, they will ask you if you can full pay the account - most likely the answer will be no. Therefore, there are only three options: (1) the account can be declared currently not collectible (2) you can enter into an installment agreement, or (3) you can file an Offer in Compromise. This site contains details for all of those options.

To get the levy lifted and collections suspended, in most cases, you will be required to complete a Collection Information Statement (Form 433-A or 433-F for individuals or 433-B for businesses) or provide financial information over the phone. The purpose of this form is to identify assets and income with which to pay the taxes. The way this form is completed or the way you answer the questions asked over the phone is critical. We recommend that you let an experienced firm such as TRC do it for you. Doing it yourself can do more harm than good.

If this levy is creating a hardship such as preventing you from buying food or paying your rent, mortgage, electric bill, etc., then you should tell the Revenue Officer or person at ACS that this is the case and ask for immediate relief. If they will not grant it, then you should ask to talk to their supervisor. If you are still not successful, you should file an Application for Taxpayer Assistance Order using Form 911 or contact TRC for immediate assistance. We guarantee a release of levy - generally within a day or two.

Special note: The IRS will not release a levy if you have unfiled tax returns. We are experts at quickly preparing past due tax returns to expedite a levy release. Contact us immediately to start that process.