CASE STUDY 4

Responding to an IRS Bank Levy 

The Challenge

A taxpayer learned that the IRS had levied a bank account. With access to the funds at risk, the immediate priority was to understand the collection action, the balance behind it, and whether a levy release was available.

Our Approach

Tax Matters reviewed the IRS account history, filing status, notices, and the taxpayer’s financial circumstances. We contacted the IRS to address the levy and evaluated the available collection options. Each step was guided by the facts of the account and the taxpayer’s ability to meet future obligations.

The Result

The review established what the taxpayer owed, why the levy had been issued, and which options were available. The taxpayer had a clear plan for addressing the immediate collection action and the underlying tax debt.

Key Takeaway: An IRS bank levy calls for prompt attention. Establishing the facts and communicating with the IRS can clarify the options for addressing both the levy and the balance behind it.