Steps to Take When Facing an IRS Levy on Your Bank Account
Sept. 18, 2025
When the IRS places a levy on your bank account, the stress and uncertainty can be overwhelming. The IRS uses levies to collect unpaid taxes by seizing money directly from your financial accounts. Once your bank receives the levy notice, it must freeze your funds for 21 days.
I’ve helped countless Floridians protect their rights and respond effectively to tax enforcement actions, and I want you to know that you have options. If you’ve received a notice or discovered that your account has been frozen by the IRS, now is the time to act.
That gives you a very narrow window to respond. The IRS is not required to go to court for this action—just a notice and a record of your tax debt. Understanding the legal mechanisms behind tax collection under federal and Florida tax law is key to protecting your rights and financial future.
What an IRS Bank Levy Means for You
An IRS levy on your bank account is a direct action the government takes to collect back taxes you owe. Your bank is legally obligated to comply. That means your money is no longer available for you to use, including for rent, mortgage, groceries, payroll, or any other essential need.
The IRS doesn't simply empty your account the moment the levy is issued. Instead, they freeze the funds for 21 days to give you a chance to resolve the issue.
This is your opportunity to get professional help and consider all available relief under tax law. If no resolution is reached during those 21 days, the bank must release the frozen funds to the IRS.
The levy doesn’t just end there—if your tax debt remains unpaid, the IRS can keep issuing levies on future deposits. We’ve seen this happen to clients who didn’t respond quickly enough, leaving them with recurring losses and mounting financial pressure.
Why the IRS Can Levy Your Account
Before the IRS levies your account, it must send a series of notices. These include a Notice and Demand for Payment and a Final Notice of Intent to Levy. You’re supposed to receive the final notice at least 30 days before the levy, either by mail or in person. This is not just a procedural step.
It's a legal requirement, and if you never received the notice, we may be able to challenge the levy. In Florida, taxpayers benefit from certain legal protections under both federal and state tax law.
For example, the IRS cannot levy your account if you are in bankruptcy, have a pending appeal, or have entered into an approved installment agreement.
If your rights were violated or notices were improperly delivered, that may offer grounds to reverse the levy or stop further collection actions. At Deborah Brooks & Associates, P.C., we thoroughly review every aspect of the IRS process to uncover where legal errors or missed opportunities for relief may have occurred.
Immediate Steps to Take When You Learn of a Levy
Time is critical when you discover your bank account has been frozen. Based on Florida law and federal procedure, I recommend the following steps:
Confirm the source of the levy by contacting your bank and obtaining a copy of the IRS notice.
Contact the IRS to determine exactly why the levy was issued and what amount they claim you owe.
Review all IRS correspondence and tax transcripts to verify if proper notice was given.
File an appeal or request a Collection Due Process hearing if it’s still within the 30-day timeframe.
Consider submitting a request for a levy release if the levy causes financial hardship.
If you believe the levy is wrongful (e.g., the debt is not yours or is already paid), gather documentation and prepare a legal response.
Work with a tax law attorney immediately to assess your options and submit the appropriate forms.
These steps can provide a temporary pause and give us a chance to request relief such as an installment agreement, offer in compromise, or hardship exemption. Your response must be timely and legally accurate.
IRS agents do not offer legal advice, and if you act without understanding your rights under tax law, you may lose valuable time or legal defenses.
Possible Ways to Stop or Reverse the Levy
One of the most effective ways to challenge a levy is by proving that it causes significant financial hardship. Under IRS guidelines, if the levy prevents you from meeting basic living expenses, it may qualify for release. You’ll need to provide documentation of your income, expenses, and account balances.
A hardship release is temporary—it doesn’t erase your tax debt—but it gives you room to breathe. Another option is to enter into an installment agreement with the IRS. This shows that you’re willing to repay the tax debt over time. If approved, the levy may be lifted.
A more permanent solution might be an Offer in Compromise, where you settle the debt for less than you owe. The IRS considers your income, assets, and future ability to pay. These are legal options that fall under federal tax law, but Florida taxpayers often benefit from state-level procedural rules as well.
If you qualify for innocent spouse relief or have grounds to dispute the original tax liability, we can file the proper claims to suspend or stop collection activity. It’s all about using the law to your advantage—and acting quickly.
Your Legal Rights in Florida
Florida residents face unique challenges when dealing with IRS levies. While Florida has no state income tax, the IRS still has full authority to collect federal taxes from individuals and businesses in the state.
However, state law may provide exemptions or protections for certain assets. For example, Florida’s homestead protection prevents forced sale of your primary residence by most creditors, but it does not apply to the IRS. Still, understanding these nuances is vital.
If the IRS overreaches or applies the law unfairly, we have tools to push back. At Deborah Brooks & Associates, P.C., we don’t just fill out forms—we use the law to protect your rights and fight unfair enforcement.
Whether you’re a retiree who’s had their Social Security benefits frozen or a small business owner with payroll accounts at risk, there are options rooted in tax law that may give you a second chance.
How to Prevent Future Levies
An IRS levy doesn’t have to be the end of your financial security. In fact, many of our clients use this experience as a turning point. The best way to prevent future levies is to stay current on all tax filings, pay what you can toward your tax debt, and maintain open communication with the IRS or your attorney.
If you owe more than you can pay, don’t ignore the notices. Being proactive is not about quick fixes—it’s about creating a clear plan that meets the IRS’s requirements while protecting your livelihood.
We also recommend that clients keep detailed records, use separate business and personal accounts, and stay informed about IRS enforcement powers.
Florida law does not require state income tax filings, but you still have to comply with all federal requirements, including self-employment tax, capital gains reporting, and estimated payments if you’re a business owner. A knowledgeable tax law attorney can help you stay compliant and avoid surprises in the future.
Working with Deborah Brooks & Associates, P.C.
If your bank account is under levy, you need more than general advice—you need focused guidance backed by tax law. At Deborah Brooks & Associates, P.C., I take pride in offering personalized legal solutions based on your circumstances. Let’s take the next step together—before the IRS takes another. I’m proud to serve Western Oklahoma. Call today.