How Many Times Can The IRS Levy a Bank Account?
A bank account levy is one of the IRS' most commonly used and most effective tools for collecting back taxes. Whenever the IRS issues a bank account levy, they are usually doing so to get your attention because you have missed a deadline or failed to follow other agreements that were made.
When a bank receives a Notice of Levy from the IRS, they are required to take all of the money in your account and set it aside for the IRS.
The bank is then required to hold that money for 21 days before sending it to the IRS. This 21 day grace period is meant to give you an opportunity to dispute the legality of the bank account levy.
If the IRS does not send the bank a Release of Levy by the 21st day, they will forward the money to the IRS. Once that is done, it is very difficult to get your money back.
Many people mistakenly believe that this 21 day holding period means that the IRS can only levy you every 21 days, at most.
By law, there is nothing that prevents the IRS from sending a levy every day.
The IRS does not have to wait for the 21 day holding period to expire before sending a levy. They can legally send successive levies one after another, in which case there may be multiple 21 day holding periods running at any given time.
In practice, it is extremely rare for the IRS to do this but it does happen. Usually the IRS will wait at least 21 days before sending another levy, but they are not required to do so.
If collection of your account is assigned to a local field agent, a Revenue Officer, it is more likely that they will issue multiple levies within the 21 day period.
If your account is just being worked by the IRS call centers, ACS, it is fairly unlikely that they will send multiple levies at the same time. They usually wait to see how much money they got from the first levy before sending another, and they don't know how much they got until after that 21 day window has passed.
Regardless, the best way to deal with a levy is to just make sure it never happens in the first place. You do this by proactively attacking your tax problem, which is what Colonial's staff is an expert in doing.
Save yourself the headache, and start taking care of your tax problem right now. Give us a call at (866) 573-3755 and take advantage of our free consultation to learn what we can do to end your tax problems for good.
- How to Release an IRS Levy
- Free Guide: "Stopping the Pick-Pocket: How to Release IRS Liens, Levies, and Garnishments"
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