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IRS Bank Levy 2026: What to Do If the IRS Freezes Your Account

  • Rona Law Firm
  • Apr 7
  • 2 min read

Updated: Apr 14


irs bank levy
IRS BANK LEVY

If the IRS has frozen your bank account, it can feel overwhelming and stressful. A bank levy can prevent you from accessing your own money and disrupt your ability to pay for everyday expenses. The good news is that you may still have options depending on your situation. The good news: you still have options—but timing is critical. Call 818.964.1829 now for a free consultation.



If your bank account has been frozen due to an IRS levy, you may still have options. Learn more about your options here.


What Is an IRS Bank Levy?

An IRS bank levy allows the IRS to:

  • Freeze funds in your bank account

  • Seize money to apply toward your tax debt

  • Prevent you from accessing your funds

Once the levy is issued, your bank is required to hold the funds for 21 days before sending them to the IRS.

That 21-day window is your opportunity to act.


Why the IRS Issued a Levy

The IRS typically issues a bank levy after:

  • Multiple notices have been sent and ignored

  • Tax debt remains unpaid

  • No resolution (payment plan or settlement) has been arranged

Common triggers include:

  • Owing $10,000+ in tax debt

  • Unfiled tax returns

  • Defaulted payment plans


What Happens After Your Account Is Frozen?

Once your account is levied:

  1. Your bank freezes the funds

  2. You cannot withdraw or transfer money

  3. After 21 days, funds are sent to the IRS

If no action is taken, the IRS can continue to issue additional levies.


How to Stop an IRS Bank Levy Fast

You may be able to stop or release a bank levy by:

✅ Setting Up an Installment Agreement

A payment plan can often stop collections quickly.

✅ Filing an Offer in Compromise

If you qualify, you may settle your debt for less.

✅ Requesting Currently Not Collectible (CNC)

If you’re facing financial hardship, collections can be paused.

✅ Proving Economic Hardship to release an IRS Bank Levy

If the levy prevents you from paying basic living expenses, the IRS may release it.


Can You Get Your Money Back?

In some cases—yes.

If the levy is:

  • Causing immediate hardship

  • Issued in error

  • Preventing necessary living expenses

The IRS may release the levy and return funds, but this requires quick action and proper documentation.


Why You Shouldn’t Wait

Every day matters. Once the 21-day holding period ends, your funds are sent directly to the IRS, and recovering them becomes much more difficult.


If you are dealing with a frozen bank account, it may be important to act quickly before the IRS takes further action. You can review your options for bank levy relief here.


Speak With a Tax Attorney Immediately

If your account has been frozen, you need to act fast.

An experienced tax attorney can:

  • Contact the IRS immediately

  • Request a levy release

  • Negotiate a resolution

  • Protect your assets and income


📞 Call Now for Immediate Help

If the IRS has frozen your bank account or is threatening a levy, do not wait to explore your options. Contact Rona Law Firm to discuss your situation and the next steps that may be available. Call Now: (818) 964-1829



 
 
 

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