The idea of a bank levy being imposed rather forcefully by the IRS on your already chaotic lifestyle may not seem like something you want to deal with. If you think it sounds like an interesting way to pass the time, you really need to get out more often (or consider staying in and having yourself admitted). The fact is, you are given a couple of chances during the bank levy process to stop the levy from ever happening. You simply have to take the necessary steps to stop that bank levy in its tracks.
First of all, before the IRS can place a levy on your bank account, they must provide you with notice of their intent to issue a bank levy. The notice must be given a full 30 calendar days from the proposed time of issuance. When you get this notice in your hot little hands, you have a chance to contact the IRS and work out an agreement on the amount owed and how it is going to be paid. It is often possible to make an installment payment arrangement with the IRS that will continue until the balance owed is paid off.
If you fail for whatever reason (maybe the dog ate your notice) to make acceptable arrangements with the IRS to pay your past due taxes, the bank levy will take effect just as Uncle Sam warned you it would. Once the bank receives notification of the levy, it will withdraw the amount that is currently in your account and place it on hold for 21 days. During this time you will not be able to touch the money, but it will not be sent to the IRS either.
If you really want to stop the bank levy, this is your last chance to do so. You must contact the friendly folks at the IRS who are anxiously awaiting your call as if you were some kind of celebrity and make those darned payment arrangements. This is your final chance! If you do not make the required arrangements, you can kiss the money on hold at your bank goodbye. Your bank account will be levied, but, on the bright side, your IRS debt will be decreased.
