Skip to content


IRS Bank Account Levy – How to Get It Released

If the IRS has levied your bank account, it is understandable to feel overwhelmed. A bank levy allows the IRS to take funds directly from your account to satisfy an unpaid tax liability. However, a levy does not always mean that you have no options.

The most important thing is to act quickly. Once a bank levy is issued, the bank generally places a hold on the available funds and sends them to the IRS after a short waiting period. This limited time may be critical if there are grounds to request a release or other relief.

Before levying your bank account, the IRS is generally required to follow specific collection procedures, including sending notices and informing you of your right to a Collection Due Process hearing. If those procedures were not properly followed, or if certain other circumstances exist, there may be opportunities to challenge the levy.

Depending on your situation, possible options may include:

  • Requesting a release of the levy when appropriate
  • Establishing an installment agreement or another payment arrangement
  • Demonstrating that the levy is creating an economic hardship
  • Requesting Currently Not Collectible status
  • Pursuing an Offer in Compromise if you meet the IRS requirements
  • Appealing collection actions when appropriate

If the levy has already occurred, there may still be steps that can be taken. In some situations, it may be possible to recover levied funds, particularly when the levy was improper or certain hardship conditions apply. The available options depend on the facts of your case and how quickly action is taken.

As an Enrolled Agent, I can review your tax history, communicate directly with the IRS, and help determine the best strategy for addressing the collection action. My experience as a former Associate Chief of Appeals with the IRS gives me valuable insight into how collection matters are evaluated and how to effectively present a taxpayer’s position.

A bank levy is serious, but it does not mean the situation is hopeless. The sooner you seek professional guidance, the more opportunities may be available to protect your rights and work toward resolving the underlying tax problem.

If the IRS has levied your bank account, contact me as soon as possible for a confidential consultation. We can review what happened, identify your options, and develop a plan for moving forward.