A bank levy can be issued for several reasons. It is most commonly used by the IRS and creditors. For example, if you have not paid your taxes or a debt that you owe.When a bank levy is issued it means that your account is frozen you are not able to withdraw anything out of your account. And the funds that were in your account can and usually will be seized.
Before a person has a bank levy issued to his/her account they will receive the notification letting them know that action will be taken if they don’t pay up on what they owe. It is important that as soon as the bank levy is issued to your account that you contact the court as soon as possible if it is issued by a debtor. This has to be done within 30 days of the levy being issued.
Now when the IRS issues a levy the money is not refundable and the bank levy will stay on your account until you pay all of the taxes that you owe. Although you cannot withdraw money at this time you are able to make the deposit so if you have an employer that deposits your check into your account it will be seized.
When a bank levy is issued to an account the banks usually will charge the account holder some money for every time there is a bank levy issued to that person’s account.
The IRS served banks with memos to guide them on how they will work with them when issuing bank levies. They send these memos to make banks aware of the laws governing the disclosure of bank account information. Bank levy relief attorneys in Dallas at Scammahorn Law Firm, PC are here to help you.