Confirm the bank’s service date
We check when the bank received the levy and when the 21-day holding period generally ends.
The IRS levied your bank account
A bank levy holds funds for the IRS while you review whether the facts support a release request.
How it works
Document a release ground
We review hardship, payment arrangements and other applicable grounds, then prepare supporting records.
Request release and follow up
We ask the IRS to decide and, if it approves release, confirm that the bank receives the instruction.
Which sounds like you?
The bank generally holds the funds for 21 days
A bank levy is an IRS instruction to your bank to send money toward unpaid tax. Under IRC §6332(c), the bank generally holds the levied funds for 21 calendar days before sending them to the IRS. During that hold, you can ask for a release, document hardship or seek a payment arrangement; the IRS decides whether release is justified.
The holding period starts when the bank receives Form 668-A, not when you discover the levy. The bank generally sends the funds on the first business day following the 21st calendar day, subject to applicable extensions. IRM 5.11.4 and Treas. Reg. §301.6332-3 describe this process, including interest on held funds up to the amount of the levy.
IRC §6331(a) authorizes collection by levy on property and rights to property. Unlike a continuous wage levy under IRC §6331(e), a bank levy generally reaches funds on deposit when served, not later deposits. IRC §6331(b), Treas. Reg. §301.6331-1(a)(1) and Treas. Reg. §301.6332-3 describe the applicable rules.
Section 6236(e)(1) of the Technical and Miscellaneous Revenue Act of 1988 established the bank holding period. You cannot withdraw the levied funds during the hold, but they have not yet been sent to the IRS. Waiving the hold removes time to seek release before payment.
Grounds for requesting release
IRC §6343(a)(1)(A)–(E) and Treas. Reg. §301.6343-1(b) require release when a listed condition is met. We document the relevant condition; the IRS determines whether it applies to your case.
Liability satisfied or unenforceable
IRC §6343(a)(1)(A); Treas. Reg. §301.6343-1(b)(1)
The levy must be released if the underlying liability has been paid in full, abated, or has become unenforceable by lapse of time — typically when the Collection Statute Expiration Date (CSED) under IRC §6502 has expired.
We review account transcripts and verify each tax period’s CSED.
Note: IRM 5.11.2.3.1.2 confirms that a levy served before CSED expiration remains enforceable even if the 21-day holding period extends past the CSED.
Release will facilitate collection
IRC §6343(a)(1)(B); Treas. Reg. §301.6343-1(b)(2)
The levy must be released if release will facilitate collection of the liability.
For bank levies on operating businesses, this is the strongest ground — if the levy is preventing the business from making payroll, paying vendors, or operating, the business stops producing the income that could satisfy the debt.
This is the operative ground for business entities, which cannot invoke the hardship ground under (D).
Installment agreement under IRC §6159
IRC §6343(a)(1)(C)
A qualifying installment agreement under IRC §6159 supports release, unless the agreement provides otherwise.
For balances at or under $50,000 with all returns filed, the existing streamlined installment agreement example under IRM 5.14.5 generally does not require full financial disclosure.
The 1-3-business-day estimate is not a commitment; the IRS decides whether to approve the arrangement and issue Form 668-D, and an agreement may provide otherwise.
Economic hardship
IRC §6343(a)(1)(D); Treas. Reg. §301.6343-1(b)(4)
The Secretary must release a levy creating economic hardship — defined as a situation where satisfaction of the levy will cause an individual taxpayer to be unable to pay reasonable basic living expenses.
For bank levies, the hardship analysis often turns on whether the levied funds are needed for immediate basic expenses: rent due, utility shut-off, prescription medication, food, or transportation to work.
The Tax Court's holding in Vinatieri v.
Commissioner, 133 T.C. 392 (2009) governs the analysis.
Note: This ground applies to individual taxpayers only — not business entities.
See Lindsay Manor Nursing Home, Inc. v.
Commissioner, 148 T.C. 235 (2017).
Value exceeds the liability
IRC §6343(a)(1)(E)
If the value of the property levied substantially exceeds the liability and release would not endanger collection, the IRS must release the excess portion.
Rarely the primary ground for bank levies but available where the levy reaches more than the assessment.
How a request reaches the IRS
The available route depends on the records, hardship facts and notice deadlines. These timing examples are not promises of action or release. The IRS decides the request, and bank processing can add time.
Direct release request under IRC §6343
IRC §6343(a)(1); IRM 5.11.2.3
Existing estimate: same-business-day to 5 business days; not guaranteed
We file Form 2848 (Power of Attorney and Declaration of Representative) with all relevant tax years and form types.
We identify the IRS function holding the case via account transcript review — typically ACS (Automated Collection System) or the assigned revenue officer.
We submit Form 433-A or Form 433-F with full financial substantiation and the §6343(a)(1) ground citation.
Once the IRS approves release, Form 668-D is faxed directly to the bank.
The bank then releases the hold on the funds, usually within its normal processing time.
Form 911 to Taxpayer Advocate Service
IRC §7811; Treas. Reg. §301.7811-1
Existing estimate: 24-72 hours for verified significant hardship; not guaranteed
When direct release is delayed and the 21-day clock is running, we file Form 911 (Request for Taxpayer Advocate Service Assistance) in parallel.
Under IRC §7811(a)(2), significant hardship includes an immediate threat of adverse action; an approaching bank remittance may support a request, depending on the facts.
The National Taxpayer Advocate has independent statutory authority to issue a Taxpayer Assistance Order (TAO) compelling the IRS to release the levy.
Collection Due Process — Form 12153
IRC §6330; Treas. Reg. §301.6330-1
Timely filing generally suspends covered collection; it does not itself release an existing levy
For Letter 1058 / LT11 (Final Notice of Intent to Levy): 30 days from the date printed on the notice to request a hearing — not the day it reached you.
Timely filing of Form 12153 generally suspends covered collection under IRC §6330(e)(1), but does not itself release a levy already served.
Filing inside the CDP window is often the strongest move because it preserves Tax Court review rights under IRC §6330(d)(1).
If the 30-day window is missed, an Equivalent Hearing under Treas.
Reg. §301.6330-1(i)(2) remains available within one year — same Appeals consideration, no judicial review rights.
If the bank has already sent the funds
After the 21-day hold, a request to return funds differs from a release request under IRC §6343(a). Eligibility and deadlines depend on who owns the funds and why the levy was improper. A return is not guaranteed.
Administrative request
A non-taxpayer third party whose funds were wrongfully levied may file a claim under IRC §6343(b). The taxpayer may request return under IRC §6343(d), including where the levy was premature or return would help collection. IRS Publication 4528 and Publication 5149 describe the procedures, including submission to the Collection Advisory Group manager for the levy area.
Section 11071 of the Tax Cuts and Jobs Act, P.L. 115-97 (December 22, 2017), extended the applicable deadline from 9 months to 2 years. The governing deadline must be checked against the type of request and levy date.
Third-party civil action
IRC §7426 allows qualifying third parties to bring a wrongful-levy action in U.S. District Court; the assessed taxpayer cannot use this action. In EC Term of Years Trust v. United States, 550 U.S. 429 (2007), the Supreme Court confirmed §7426 as the exclusive judicial remedy for that third-party claim. The existing deadline is 2 years from the levy, extended by TCJA Section 11071 for levies after December 22, 2017.
Who handles the request
Ebot Mbi, CPA, EA holds Texas CPA license #127163 and IRS Enrolled Agent status, federally authorized by the U.S. Department of the Treasury under Circular 230. CPAs, Enrolled Agents and attorneys may represent taxpayers in IRS administrative matters. The office is at 4425 W Airport Fwy, Ste 595, Irving, TX 75062.
Sources and IRS Forms
Fees and engagement
The fee and scope are confirmed in the written engagement letter before IRS contact.
- Notice Review
- $97
- Case Analysis
- Case Analysis: $497
- Resolution work
- Fixed by work type and amount owed
- Representation (Form 2848)
- $1,000
Case Analysis is $497 regardless of balance owed, tax years, complexity or urgency. The $97 Notice Review is credited toward the $497 Case Analysis. Phase 2 work is priced in the published ranges on our IRS fee page, or quoted in writing after the Case Analysis. Fixed fees, confirmed in writing before work begins. Not a guarantee of any IRS outcome. We never charge a percentage of tax saved.
The engagement letter controls the work; no specific outcome or timeline is guaranteed. Outcomes depend on the facts, IRS procedures and applicable law. Texas CPAs are bound by the rules of the Texas State Board of Public Accountancy.
Common questions
How fast can a bank levy be released inside the 21-day window?
Under IRM 5.11.2.3, a release can be requested during the 21-day holding period with records supporting the release ground; the IRS decides.
Same-business-day action and 24-72 hours for Taxpayer Advocate Service assistance are timing examples, not promised release times; hardship is assessed under IRC §6343(a)(1)(D).
If the IRS approves, it sends Form 668-D to the bank, whose processing may take until the next business day or longer.
Can the IRS take money I deposited after the levy was served?
No — only funds on deposit at the moment of service are subject to the original Form 668-A. 26 C.F.R. § 301.6332-3 confirms the levy attaches only to those funds on deposit at the time the notice was served.
A second Form 668-A would have to be served to reach later deposits.
Practical caveat: some banks freeze the entire account during a levy.
The frozen status does not legally attach the new deposits, but it may make them inaccessible until the original levy is resolved.
My business account was levied — can I get a hardship release?
The economic hardship release under IRC §6343(a)(1)(D) applies to individual taxpayers only.
The Tax Court confirmed this in Lindsay Manor Nursing Home, Inc. v.
Commissioner, 148 T.C. 235 (2017).
Business entities cannot invoke the hardship ground.
For business bank levies, the operative release ground is IRC §6343(a)(1)(B) — release will facilitate collection — where the levy prevents the business from operating, making payroll, or generating the income needed to satisfy the debt.
The bank already sent the money to the IRS — can I get it back?
Possibly, but the framework changes.
After the 21-day holding period expires, recovery shifts to IRC §6343(b) (administrative wrongful-levy claim) for non-taxpayer third parties or IRC §6343(d) for taxpayers.
The deadline was extended from 9 months to 2 years by Section 11071 of the Tax Cuts and Jobs Act (December 22, 2017).
For third parties in joint-account situations, IRC §7426 authorizes a civil action — the Supreme Court confirmed in EC Term of Years Trust v.
United States, 550 U.S. 429 (2007) that §7426 is the exclusive judicial remedy.
The bank account is joint with my spouse. Can the IRS take my spouse's money?
Under Treas.
Reg. §301.6332-1, a levy on a joint account reaches the assessed taxpayer's unrestricted right to withdraw funds — even if all deposits were made by the non-liable joint owner.
The bank is discharged from liability to the non-liable joint owner under IRC §6332(e).
The non-liable spouse's recovery path is IRC §6343(b) administrative claim or IRC §7426 civil action.
In Texas, community-property analysis under Tex.
Fam.
Code § 3.202 frequently allows the IRS to reach community property for one spouse's liability.
Should I waive the 21-day holding period if the bank asks me to?
No.
The 21-day holding period under IRC §6332(c) is a statutory protection that exists specifically to allow release before remittance.
Waiving it eliminates the window.
Treas.
Reg. §301.6332-3(c)(1)(ii) confirms that when more than one depositor is listed on the account, all depositors must agree to a waiver — meaning a non-liable joint owner can refuse to waive even if the assessed taxpayer wants to.
Decline any bank waiver paperwork until you have professional representation in place.