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