| A bank levy can be issued for several reasons. It is | | | | persons account. |
| most commonly used by the IRS and creditors. For | | | | The IRS served banks with memos to guide them on |
| instance if you have not paid your taxes or a debt | | | | how they will work with them when issuing bank |
| that you owe. | | | | levyies. They send these memos to make banks |
| When a bank levy is issued it means that your | | | | aware of the laws governing the disclosure of bank |
| account is frozen you are not able to withdraw | | | | account information. |
| anything out of your account. And the funds that | | | | The law that was shared on business tax recovery |
| was in your account can and usually will be seized. | | | | website was "Title 26 United States Code Section |
| Before a person has a bank levy issued to his/her | | | | 6333 of the Internal Revenue Code (IRC) authorizes |
| account they will receive a letter, a phone, or some | | | | the Service to examine any books or records |
| type of notice letting them know that action will be | | | | pertaining to property or a right to property subject |
| taken if they don't pay up on what they owe. | | | | to a levy. 1 The Treasury Department interprets this |
| It is important that as soon as the bank levy is | | | | section to mean that, at a minimum, the Service |
| issued to your account that you contact the court as | | | | would be entitled to a bank record indicating a levied |
| soon as possible if it is issued by a debtor. There is a | | | | accounts balance on the date the levy was served." |
| way for you to be able to receive your funds back | | | | This is only a portion of one of the guiding memos |
| and make a payment plan with the debtor. This has | | | | that the IRS has served banks with. When an IRS |
| to be done within 30 days of the levy being issued. | | | | issues a bank levy the bank is required to give the |
| Now when the IRS issues a levy the money is not | | | | IRS all of the taxpayers account information either |
| refundable and the bank levy will stay on your | | | | willingly or by summons. |
| account until you pay all of the taxes that you owe. | | | | When the bank levy is issued the account is frozen |
| Although you cannot withdraw money at this time | | | | immediately whether the bank gives the information |
| you are able to make deposit so if you have an | | | | right then or if the taxpayer's information has to |
| employer that deposits your check into your account | | | | summonsed. |
| it will be seized. | | | | One way to avoid this happening to you is of course |
| When a bank levy is issued to an account the banks | | | | pay your taxes and your debtors. It is not a pleasant |
| usually will charge the account holder $100 or more | | | | thing to go to your bank account one day and find |
| for every time there is a bank levy issued to that | | | | you cannot withdraw money or pay your bills. |