There’s a special kind of panic that hits when you try to pay a bill and discover your bank account is frozen. An IRS bank levy can seize the funds in your account to satisfy a tax debt, leaving you scrambling to cover rent, groceries, and everything else. If this is happening to you, time matters — but so does knowing that a levy can often be released. Here’s how an IRS bank levy works and what you can do about it right now.
How a bank levy differs from a garnishment
A wage garnishment takes a slice of each paycheck over time. A bank levy is a one-time grab: the IRS instructs your bank to freeze and turn over the funds in your account up to the amount you owe. There’s typically a short holding period before the bank actually sends the money to the IRS — and that window is your opportunity to act.
The holding period is your window
When the levy hits, your bank generally holds the funds for a set number of days before releasing them to the IRS. That waiting period exists in part to give you a chance to resolve the issue. It’s the single most important reason not to wait: the faster you engage the IRS, the better your odds of getting a release before the money is gone.
Step 1: Contact the IRS immediately
The clock is running, so the first move is to reach the IRS — or have an attorney do it for you — as quickly as possible. This is not the time to let another day slip by hoping it resolves itself. Prompt action is what makes a release possible within the holding window.
Step 2: Prove hardship if the levy leaves you unable to live
If the levied funds were earmarked for necessities — rent, utilities, food, medicine — you may have a strong economic hardship argument. The IRS is required to release a levy that creates a genuine hardship, and documenting your essential expenses is central to making that case.
Step 3: Put a resolution in place
A levy is often the IRS’s way of getting your attention after other collection steps. Entering into an installment agreement, qualifying for an offer in compromise, or securing not-collectible status can each be grounds for releasing the levy and, just as importantly, preventing the next one.
Step 4: Use your appeal rights
You may be entitled to challenge the levy through an appeal, which can also help recover funds if the levy was improper — for example, if it was issued in error or without the required notice. Deadlines are tight, so this is another reason to move fast.
Don’t forget the California FTB
California’s Franchise Tax Board can levy bank accounts too, using its own procedures. If you owe both, releasing the IRS levy won’t protect you from a state levy. Bank levies also tend to arrive alongside other debt pressures, so it’s wise to address the whole situation through our tax practice rather than one levy at a time.
Frequently asked questions
How long do I have before the IRS takes the money? Your bank generally holds the funds for a limited period before turning them over. That short window is exactly why acting immediately gives you the best chance at a release.
Can I get my money back after a levy? Sometimes. If the levy was improper or created a hardship, you may be able to secure a release or recover funds — but the sooner you act, the better your options.
Will one levy be the end of it? Not necessarily. A bank levy is a one-time seizure, and the IRS can levy again if the underlying debt isn’t resolved. Putting a real solution in place is how you stop the cycle.
What if the California FTB levies me too? The FTB acts independently of the IRS. We help clients address federal and state levies together so one release doesn’t leave the other in place.
Act now — free consultation
When your account is frozen, hours matter. The Somal Law Firm in Pleasanton helps Tri-Valley and East Bay residents move quickly to release IRS bank levies and protect the money they need to live. Call (415) 754-0115 right away for a free consultation, or reach us through our contact page. Let’s work to get your account unfrozen.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.