How to Stop a Bank Levy Before It Drains Your Account

Sabih Shafi E.A
10 hours ago
2 min read

You wake up, check your bank account, and something’s wrong. Funds are missing—or completely frozen. The IRS has issued a bank levy, and they’ve legally seized your money. Now what?

If you’re reading this before it happens—good. Because the best way to stop a levy is before it hits.

What Is an IRS Bank Levy?

An IRS bank levy is when the government legally seizes money directly from your bank account to satisfy a tax debt. Unlike a wage garnishment, this is one big hit—they can take everything up to the amount you owe.

How It Works:

IRS sends you Notice CP90
You get 30 days to respond or resolve
If nothing is done, the levy hits your account
Your bank freezes funds for 21 days
After that, funds are transferred to the IRS

Can You Reverse It?

Only in certain cases:

If the IRS didn’t follow proper notice procedures
If you prove financial hardship
If you enter a payment plan or Offer in Compromise fast enough

But timing is everything. After the 21-day window, it’s very hard to get money back.

What to Do Immediately:

Don’t ignore the CP90 or Final Notice
Call a tax resolution specialist ASAP
Do not try to negotiate with the IRS yourself after a levy hits—time is too short

Why People Miss the Warning Signs:

IRS letters go to old addresses
People assume the IRS won’t act
Notices can be confusing or unclear

At All State Tax Resolution, we specialize in levy prevention and reversal. We’ll act within the legal window to protect your money—and resolve the debt in a way that works for you.