An IRS bank levy is a one-time attachment — not continuous like a wage levy. Form 668-A freezes the balance on deposit at the moment the bank receives it. Under IRC §6332(c), the bank must hold those funds for 21 calendar days before remitting them to the IRS. That 21-day window is the taxpayer's opportunity to secure a release.
An at-a-glance view of every step covered in this guide.
The bank freezes only the balance on deposit the moment the levy is served. Deposits made after that moment are not attached — a critical planning point. The 21-day hold gives the taxpayer time to negotiate a release; on day 22 the bank remits the frozen funds to Treasury.
Under IRC §6343 and Treas. Reg. §301.6343-1, the IRS must release a levy if it will cause economic hardship, if the taxpayer has entered an installment agreement, if the statute has expired, or if release will facilitate collection. Hardship is proved with Form 433-A/F showing that the frozen funds are needed for basic living expenses.
Where the frozen funds are payroll, rent money, or business operating cash, we file Form 911 with the Taxpayer Advocate Service in parallel with the ACS or Revenue Officer request. TAS can issue a Taxpayer Assistance Order (TAO) that overrides the levy when the standard channel is moving too slowly against the 21-day deadline.
The bank remits the frozen balance to Treasury. Once transferred, recovering those funds requires a wrongful-levy claim under IRC §6343(b) or a refund claim, which is dramatically harder than a pre-remittance release.
No. Form 668-A attaches only funds on deposit at the moment of service. Deposits the next day are yours — but a subsequent levy can catch them.
Yes. The IRS can attach a joint account for a single spouse's liability. The non-liable spouse can file a wrongful-levy claim to recover their share, but it is administratively burdensome; preventing the levy is the better play.
Entering an IA generally requires the IRS to release future levies and often the pending one, especially when the levy funds are needed for the IA's monthly payment. This is a common release argument.
A licensed tax attorney will pull your IRS transcripts, review your situation, and walk you through the resolution options that fit — no obligation.