Bank levy

A bank levy is an IRS seizure of funds in a bank account, which freezes the balance on the day the bank receives it and requires the bank to send the funds to the IRS after 21 days unless the levy is released.

The 21-day window exists to allow release for hardship, error, or a resolution. Deposits after the levy date are not captured; a new levy would be needed.

Why it matters: the release request must move faster than the 21 days. See tax levy.

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.