A fantastic experience
Working with Luke at Choice Tax service has been a fantastic experience. His commitment to clear communication is what truly sets him apart. I was always impressed by his responsiveness to my questions.
CarlaBank Levy Release
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What is a bank levy release?
An IRS bank levy allows the IRS to legally seize funds directly from your bank account to satisfy unpaid tax debt. Once a levy is issued, your bank must freeze the funds in your account for 21 days before sending them to the IRS, giving you a narrow window to act. A bank levy release is a formal action taken to stop or reverse this seizure, either by proving the levy was issued in error, showing it creates a significant financial hardship, or resolving the underlying tax debt through an approved arrangement with the IRS.
Choice Tax Relief moves quickly to contact the IRS and pursue a levy release before your bank sends the funds to the IRS, or to recover funds already levied in certain circumstances. We review your case, verify your compliance status, and negotiate directly with the IRS on your behalf. If a full release isn't possible, we also evaluate longer-term solutions such as an installment agreement, offer in compromise, or currently-not-collectible status, so your tax debt gets resolved and future levies are prevented.
Who Qualifies for a Bank Levy Release?
You may qualify for a bank levy release if:
- You are experiencing significant economic hardship as a result of the levy, such as being unable to pay for basic living expenses.
- The levy was issued in error or violated proper IRS procedure, such as issuing it without adequate prior notice.
- You have entered into, or qualify for, an installment agreement with the IRS.
- You are currently in bankruptcy proceedings, which may halt collection activity.
- The value of the property levied exceeds your tax liability, and releasing it would facilitate collection.
- You can demonstrate the levy prevents you from paying necessary business expenses, such as payroll.
- You have filed all legally required tax returns, or are prepared to file them immediately.
- Releasing the levy would be in the best interest of both you and the government.
Meeting these general conditions does not guarantee the IRS will agree to release your levy. The IRS considers the full picture of your financial situation, your compliance history, and the specifics of how and why the levy was issued. Because banks typically hold levied funds for only 21 days before releasing them to the IRS, time is critical, and professional representation early in the process significantly improves your chances of a favorable outcome.
How Our Process Works
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Assess the Levy and Your Options
We immediately review the levy notice, your IRS account transcripts, and your compliance status to determine the fastest path to a release and confirm how much time remains before funds are sent to the IRS.
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Contact the IRS and Build Your Case
We contact the IRS directly on your behalf, document your financial hardship or procedural grounds for release, and prepare the financial disclosures needed to support your request.
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Negotiate the Release and Resolve the Debt
We negotiate the levy release with the IRS and put a longer-term resolution in place, such as an installment agreement or offer in compromise, so your accounts stay protected going forward.
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The Best Tax Relief Attorney & CPA In the Business
Logan and Greg lead a team of experienced tax professionals and support staff to achieve the best possible outcomes for Choice Tax Relief's clients.
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Not the "money up front" approach
I interacted with 4 other providers before finding Choice Tax Relief. All the others were offering a "let's get your money up front, then see how this all plays out for you" approach.
Robert
Can't say enough good things
I can't say enough good things about Choice Tax Relief! A special thank-you to Nathan and Luke for their help and professionalism throughout the entire process.
Sara
Stellar company and staff
I highly recommend Choice Tax Relief. Tim & Luke were amazing and professional in getting my taxes done and turned in for multiple years. I will be using them for all my tax filings now and in the future. Stellar company and staff!
JackieBank Levy Release FAQ's
An IRS bank levy is a legal seizure of funds directly from your bank account to satisfy unpaid federal tax debt. The IRS instructs your bank to freeze the funds, which are then sent to the IRS after a mandatory holding period unless the levy is released.
The IRS generally must send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before levying your account, though exceptions exist in certain jurisdiction-transfer or state-refund cases.
Banks are generally required to hold levied funds for 21 calendar days from the day the levy is received before remitting them to the IRS, which creates a short window to negotiate a release.
It's more difficult, but in some cases funds already sent to the IRS can be returned, particularly if the levy caused an economic hardship or was issued in error. Acting before the 21-day holding period ends is far more effective.
A levy typically applies only to the specific account(s) identified in the levy notice, though the IRS can issue separate levies against multiple accounts or income sources.
Yes. The IRS can also issue a separate wage garnishment (levy) against your employer, which is a continuous levy applied to each paycheck until released, unlike a one-time bank account levy.
Economic hardship generally means the levy leaves you unable to meet necessary living expenses, such as housing, utilities, food, or medical care, documented through a financial disclosure statement.
Generally yes. The IRS typically requires that you have filed all legally required tax returns, or are prepared to file them immediately, before agreeing to release a levy.
We move immediately once retained, often contacting the IRS the same day to request a release before the bank's holding period expires and your funds are sent to the IRS.
No. A levy release stops the immediate seizure, but the underlying tax debt remains until resolved through an installment agreement, offer in compromise, currently-not-collectible status, or full payment.
Yes. Entering into an approved installment agreement is one of the most common ways to secure a levy release, since it demonstrates you're actively resolving the debt.
The IRS typically requires a completed financial disclosure statement along with supporting documentation of income, expenses, assets, and liabilities to evaluate a hardship or alternative resolution.
If left unaddressed, the bank will send the levied funds to the IRS after the holding period, and the IRS may continue to pursue additional collection actions, including further levies or wage garnishment, until the debt is resolved.
Other Tax Relief Services
Installment Agreement Negotiation
Need more time to pay? We negotiate an installment agreement with the IRS calculated for an affordable, sustainable monthly payment based on your financial circumstances.
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Currently Not Collectible Status
If paying the IRS would prevent you from meeting necessary living expenses, the IRS may temporarily suspend active collection. We prepare and present the financial case required to demonstrate hardship.
Read more >
IRS Levy Release
A bank levy or wage levy can create an immediate financial crisis. We communicate with the IRS, evaluate available collection alternatives, and work to obtain a levy release when the facts support one.
Read more >
Penalty Abatement
IRS penalties can substantially increase a tax balance. We determine whether you may qualify for relief based on compliance history, reasonable cause, or another applicable IRS procedure.
Read more >Get IRS
Tax Relief
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