Anyone who has ever bounced a check knows that the dreaded snowball effect immediately begins, whipping a series of catastrophes at you when you least need them. Soon, you are digging under seat cushions for change just so you can put gas in your car to make it to work. If your bank account is ever levied by the IRS, you may feel a similar pinch.
There are issues that affect IRS tax levy bank account safety. People who have been levied in the past often wonder if it is a good idea to put money back into the same account. Additionally, there are those who decide that, after such a harrowing experience, the space beneath their mattress is a much safer place to keep their money.
By taking the time to review and to try to understand IRS tax levy bank account protocol, you will more likely feel safe in returning to your bank following a levy. When reminiscing over an IRS tax levy bank account horror, keep these points in mind:
- When an account is levied, a one-time debit is taken from it. A levy is not a free-for-all between your bank and the IRS!
- Any money you deposit into your account after the levy is processed is yours; you will have plenty of opportunity to misappropriate it without assistance from the IRS.
- In order to snag bonus funds from your account, another levy would need to be issued by the IRS. Chances are that, after the amount of time it took them to figure out how to issue the first one, there will not likely be another any time soon. The operative phrase here is “not likely.” If you are leery of having more of your money snatched up by the IRS, you should probably be more concerned about other accounts, your paycheck, and so on.
- The 21 day holding period is your chance to fight the IRS for your money and get the levy released. Do not waste a moment!
Of course, it is your decision in the long run. However, odds are your bank account is safe to use again.
