• April 2, 2018
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A Bank levy is the IRS’s right to collect the amount owed by a taxpayer. Under the provision, the IRS freezes the funds available in the defaulter’s bank account. Even though a bank levy is one of the most extreme tactics used by the IRS to collect outstanding payments; the good news is, taxpayers have ways to avoid the situation.

In this post we provide an overview of the scenarios in which the IRS may release a levy, and what taxpayers need to do to find their way out of the problem. Read on.

Scenarios in which the IRS can Release a Levy

The IRS releases a levy when:

  • The taxpayer has paid the owed amount, in full.
  • The collection of debt is completed before the issuance of the levy.
  • Releasing the levy can help taxpayer pay off the debt
  • Taxpayer enters into an installment agreement, which does not allow levy to continue.
  • The levy creates an economic hardship for the taxpayer

NOTE: If any amount was sent to the IRS before the release of the levy, you can file a claim to get the money back.

The Way Ahead

The IRS issues a notice to the taxpayer before placing a levy on their assets. In most cases, a bank levy can be avoided by acting while there is still time and informing the IRS about your intent to pay off the debt. The best way to communicate effectively with the IRS is through an IRS tax lawyer. Hire an experienced lawyer who can help you deal with the issue.

The Bottom Line

If you find yourself at the receiving end of a bank levy, hire an experienced IRS tax lawyer who can help guide the way to a resolution. The attorneys at the Law Office of Nick Nemeth have extensive experience in helping taxpayers resolve of IRS tax related problems. For a free consultation, simply call (972) 426-2553 . Alternatively, fill out our contact form and we will take it from there.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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