How to Remove an IRS Bank Levy from Your Account

How to Remove an IRS Bank Levy from Your Account

Facing an IRS Bank Levy: Why Is It So Frightening?

I know that facing an IRS bank levy can feel frightening and isolating. When your bank suddenly restricts your funds, it’s like a punch to the gut—it’s emotional, confusing, and leaves you worried about how you’ll pay your bills or support your family. Honestly, that sense of helplessness is something no one should have to experience alone.

How Did This Happen? Understanding IRS Authority

You might be asking yourself, “How did it get this far?” Under Internal Revenue Code § 6331, the IRS has the authority to seize your assets—including funds in your checking or savings account—if it believes you owe back taxes. That’s why you got that shocking notice or that alarming freeze on your account. But here’s the thing: you have rights and options, and this isn’t the end of the road.

The Notice Process: Why the Levy Feels Sudden

One reason a bank levy feels so overwhelming is that the IRS usually doesn’t freeze your account without plenty of warning. They’ve likely sent repeated notices—often called a “Notice and Demand for Payment,” followed by a “Final Notice of Intent to Levy.” If those warnings went unanswered or unresolved, the IRS took the next step and placed a hold on the funds in your account. So, even though this feels sudden, it was set in motion by a series of earlier notifications that, honestly, can be easy to miss or misunderstand when you’re juggling life’s demands.

What Happens During the 21-Day Window?

What should you expect when you learn that your bank account is on hold? Typically, your bank has 21 days to hold onto the levied funds before sending them off to the IRS. During this window, you have the chance to work out a resolution. You might request a Collection Due Process (CDP) hearing if you believe the levy was issued in error or if you want to discuss payment alternatives—like an installment agreement or an Offer in Compromise.

Our White Glove Standard at Spodek Law Group

At Spodek Law Group, we pride ourselves on delivering what we call a “white glove” standard of care. That means transparent fees, regular updates, and a commitment to using cutting-edge technology to serve our clients nationwide. We have a digital portal that lets you track every step of your case, submit documents securely, and communicate directly with our team. We also keep our phones open 24/7, because we know IRS problems don’t just crop up between nine and five.

Meet Todd Spodek: A Second-Generation Lawyer

Frankly, our selectivity about the clients we take on also sets us apart. Todd Spodek, our managing partner and a second-generation lawyer, has appeared in notable media outlets like the New York Post and Newsweek—plus he was featured in a 2022 Netflix series for his high-profile representation of Anna Delvey (Anna Sorokin). We draw on those decades of trial experience to help individuals dealing with all sorts of complicated legal issues, including IRS levies. We’re not interested in quick fixes—we’re dedicated to thorough investigations, personalized defense strategies, and real results.

Step One: Confirming the Debt

So, let’s talk practical steps. The first key to removing an IRS bank levy is to confirm you actually owe what the IRS says you owe. Mistakes happen—both on your side and theirs. By reviewing your tax transcripts, examining any past notices, and verifying your account balances, we can see if the levy is based on accurate numbers. If there’s a discrepancy, you can challenge the levy and potentially get it lifted immediately.

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2024-03-21

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Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

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2024-03-15

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2024-03-15

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2024-03-12

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2024-03-12

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2024-02-28

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2024-02-24

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Step Two: Exploring Your Options If the Levy Is Valid

If the levy is valid, there are still multiple routes to relief. A formal Installment Agreement lets you pay off what you owe in manageable monthly amounts, and often, the IRS will lift the levy once that agreement is in place. There’s also the Offer in Compromise, which can reduce the total amount owed if you prove you can’t afford the full balance. The main point is that you don’t need to sit by and watch your bank account drain; you have options.

How a Collection Due Process (CDP) Hearing Can Help

Now, the Collection Due Process (CDP) hearing I mentioned earlier can be a powerful tool. If you request a CDP hearing within 30 days of the final levy notice, the IRS has to pause enforced collection actions—like the bank levy—while an independent appeal officer reviews your case. This is your chance to argue that the levy is unwarranted or to propose a payment plan that makes more sense for your situation. Think of it as pressing the “pause” button on the IRS until you can be heard.

Considering Currently Not Collectible (CNC) Status

In some cases, we might also explore “Currently Not Collectible” status, where the IRS acknowledges you simply don’t have the means to pay anything right now. While it doesn’t completely wipe out your debt, it does halt collection activities (including levies) until your situation improves. Every case is unique, and we customize our approach after a thorough review of your finances, documentation, and even your future income potential. That’s part of the reason we go the extra mile to investigate every angle—so we can advocate for the relief you truly deserve.

We’re Here for You, Coast to Coast

If you’re feeling overwhelmed, you’re not alone. We’ve seen clients from coast to coast who never thought they’d break free from IRS trouble. Our coast-to-coast presence—New York, Los Angeles, and beyond—means we’re equipped to represent you wherever you are in the country. We’ll never judge how you ended up here; our goal is to walk you through the path to resolution, step by step, with genuine compassion and relentless advocacy.

Take the Next Step: Your Consultation Awaits

We encourage you to reach out for a consultation—no strings attached—so we can get a real sense of what’s going on with your tax situation. Once we understand the specifics, we’ll talk strategy, whether that means challenging a levy, negotiating a settlement, or setting up a payment plan. And remember, this article is general guidance, not formal legal advice. If you’re ready to take control of your finances and finally get some relief, call us anytime or use our digital portal to schedule an appointment.