Facing an IRS bank levy can be an overwhelming experience. In 2025, the IRS continues to employ aggressive collection tactics, including bank levies, to recover unpaid taxes. Understanding how these levies work and how to respond is crucial. ONeill Tax Resolution, led by founder and CEO Patti ONeill, offers expert assistance to individuals and businesses dealing with such tax challenges.
What Is an IRS Bank Levy?
An IRS bank levy is a legal action that allows the IRS to seize funds directly from your bank account to satisfy a tax debt. Unlike a lien, which is a claim against your assets, a levy actually takes your property to pay the debt. This can lead to frozen accounts and financial hardship if not addressed promptly.
The Process of a Bank Levy
The IRS follows a specific process before initiating a bank levy:
- Notice and Demand for Payment: The IRS sends a bill outlining the amount owed.
- Final Notice of Intent to Levy: If payment isn’t made, the IRS issues a final notice at least 30 days before the levy.
- Levy Execution: If no action is taken, the IRS instructs your bank to freeze your account.
- 21-Day Holding Period: The bank holds the funds for 21 days, giving you time to resolve the issue.
- Funds Seized: If unresolved, the bank releases the funds to the IRS.
Impact of a Bank Levy
A bank levy can have severe consequences:
- Immediate Financial Strain: Loss of access to funds can disrupt bill payments and daily expenses.
- Credit Damage: Levies can negatively affect your credit score.
- Business Disruption: For business owners, levies can halt operations by freezing necessary funds.
How ONeill Tax Resolution Can Assist
ONeill Tax Resolution offers personalized strategies to address and resolve IRS bank levies:
- Immediate Action: They can contact the IRS on your behalf to halt the levy process.
- Negotiation: Their team can negotiate payment plans or settlements suitable to your financial situation.
- Representation: With over 35 years of experience, Patti ONeill and her team can represent you in all dealings with the IRS, ensuring your rights are protected.
Preventing Future Levies
To avoid future bank levies:
- Stay Compliant: Ensure all tax filings are up to date.
- Communicate with the IRS: Respond promptly to any IRS correspondence.
- Seek Professional Help: Engage with tax professionals like ONeill Tax Resolution to manage your tax obligations effectively.
If you’re facing an IRS bank levy or want to prevent one, ONeill Tax Resolution is here to help. With a commitment to resolving the root of your tax issues, not just the symptoms, Patti ONeill and her team are dedicated to guiding you through your unique situation towards financial freedom.
