Bank Seizure

Receiving a Bank Seizure (also known as a Bank Levy or Bank Garnishment) can be a stressful event.  When a bank receives a levy from the IRS, they immediately put a hold on your account.  Even though your money is still at the bank, the money is “frozen” and not available to you.

If you receive a bank levy, you must act quickly to have your money put back into your account.  You only have 21 days, from the date the bank receives the levy, to work with the IRS and implement an acceptable solution.  If you are able to do this with the 21 day period, you can receive an IRS “Release of Levy”, and the bank will then put your money back into your account.

If you fail to obtain a “Release of Levy” from the IRS within 21 days, the bank will send the “Frozen Funds” to the IRS.