IRS Placed a Levy on Your Bank Account? Here’s How to Stop It and Get Your Money Back — Fast

Rona Law Firm
11 minutes ago
3 min read

Few things feel more shocking than waking up to find your bank account suddenly frozen by the IRS. You try to make a payment — and it’s declined. The IRS has likely issued a bank levy, one of the harshest collection tools they have. But here’s the good news: a levy doesn’t mean all hope is lost. In most cases, you can stop it — and even get some or all of your money released.

As a Southern California tax resolution attorney, I’ve helped countless clients reverse IRS levies, stop ongoing collection activity, and negotiate settlements that bring lasting relief. In this post, I’ll explain:

Why the IRS issues a bank levy
What you can do immediately to protect your funds
How to get the levy released
And how professional representation can prevent it from happening again

Why the IRS Issues a Bank Levy

When you owe back taxes and haven’t responded to prior notices, the IRS can legally seize funds from your bank account to satisfy your debt. Before doing so, they must issue several notices — including:

CP14 Notice: First bill for unpaid taxes
Final Notice of Intent to Levy (CP90 or Letter 1058): Your last warning before levy action
Notice of Your Right to a Hearing: Giving you 30 days to appeal

If you didn’t receive or respond to those letters, the IRS assumes you’re ignoring the debt — and they take action.

Step One: Take Immediate Action — Don’t Wait

Once a levy hits your account, the bank must hold the funds for 21 days before sending them to the IRS. That’s your window to act.

Here’s what to do right away:

Contact a tax resolution attorney who can communicate directly with the IRS on your behalf.
Avoid withdrawing funds or transferring money that might be subject to the levy — doing so could complicate negotiations.
Gather your notices and financial documents (IRS letters, recent bank statements, proof of hardship, etc.).
Don’t call the IRS yourself if you’re emotional or unsure — one wrong statement could hurt your case.

With quick legal intervention, many levies can be lifted before the 21-day window closes.

Step Two: How to Get the Levy Released

A skilled tax resolution attorney can request an immediate levy release by showing that the levy causes economic hardship or that the taxpayer is working toward compliance.

Common paths to release include:

Entering into an Installment Agreement (payment plan)
Submitting an Offer in Compromise if you qualify for a reduced settlement
Proving financial hardship — showing that the levy prevents you from paying basic living expenses
Requesting “Currently Not Collectible” status if you can’t pay anything at all right now

Each case is different, but the key is representation. The IRS is far more likely to cooperate when a tax attorney handles the communication.

Step Three: Prevent Future Levies

Once the immediate crisis is resolved, the goal is to make sure it doesn’t happen again. You can prevent future levies by:

Staying current with new tax filings and estimated payments
Maintaining a valid installment agreement or OIC
Updating the IRS if your financial situation changes
Having your tax professional review your IRS compliance regularly

At my firm, we don’t just fix levies — we help clients get to the root of the problem and establish long-term protection.

Real-World Example

One of my clients in Orange County had their entire paycheck seized due to an IRS levy that drained their checking account. Within days, I negotiated a full levy release and set up a payment arrangement the IRS accepted. The client got their funds back and avoided future levies entirely.

Why Choose Rona Law Firm

Specializes in IRS and California tax resolution
Fast, direct communication with the IRS to stop enforced collection
Flexible payment options for clients in financial distress
Local expertise — serving taxpayers across Southern California through convenient Regus virtual offices

We don’t just stop levies — we help you regain control, rebuild your finances, and move forward confidently.

If your bank account has been levied by the IRS, you only have 21 days to act before your money is gone.

👉 Call Rona Law Firm today at 818.964.1829 or schedule a free confidential consultation online. Let’s stop the levy, protect your funds, and get your financial freedom back.