Immediate checklist

  • Contact your bank now. Ask whether the bank received an IRS levy and what funds are being held. Banks commonly freeze affected accounts, then hold funds for a short period before sending them to the IRS — if the freeze is recent you may still be able to act. (See IRS Publication 594.)
  • Find and note the IRS notice. A “Final Notice — Notice of Intent to Levy” (CP504/LT11 or similar) gives you legal rights and deadlines. You usually have 30 days from the final notice to request a Collection Due Process (CDP) hearing. (IRS collection guidance.)
  • Protect exempt money. Social Security, veterans’ benefits, unemployment, some public benefits, and child support/maintenance are often exempt. Tell your bank and provide proof (award letters, benefit statements) to get exempt funds released quickly. (IRS Publication 594 on exemptions.)
  • Contact the IRS collections number on the notice. Ask the revenue officer or the phone representative for the reason for the levy, what tax periods are at issue, and whether you can stop it by paying, entering an installment agreement, or qualifying for Currently Not Collectible (CNC) status.
  • Ask for immediate release when hardship applies. If the levy prevents you from meeting basic living expenses, ask the IRS for a release on the grounds of economic hardship and be ready to provide a short budget or documentation. You can also request a levy release if the funds are exempt.

Options and forms to use

  • Request a Collection Due Process hearing — file Form 12153 — if you received a final notice within the last 30 days. A CDP hearing pauses collection while Appeals reviews your case. (IRS Appeals/CDP info.)
  • Provide financial information — Form 433-F is the standard Collection Information Statement used to seek an installment plan or CNC status. For installment agreements you can apply online or use Form 9465 (Installment Agreement Request) and, for an Offer in Compromise, use Form 656. For wrongful-levy refund claims, Form 843 (Claim for Refund) may apply. Use the Taxpayer Advocate (Form 911 service) if you face delay or immediate hardship. (IRS forms and payment options.)

What to expect from the bank and timeline

  • Banks typically have a holding period; depending on timing they may return exempt funds or send the remainder to the IRS. Even after funds are transferred, you may be able to recover them by supplying proof the levy covered exempt money or by filing a refund claim.
  • If you respond quickly (hours to days) and the levy is recent, banks and the IRS often resolve releases faster. If weeks pass and funds were transmitted, resolution can take longer and may require a refund claim or appeal.

Practical steps I use with clients

  • I tell clients to take photos/scans of the levy notice, freeze account activity (stop automatic withdrawals if possible), and collect proof of exempt income (SSA award letters, VA statements, unemployment ID). Early documentation speeds release.
  • If the levy hits a business or payroll account, I immediately involve a CPA or tax attorney — business cash-flow levies can force closures and need fast negotiation with a revenue officer.

Common mistakes to avoid

  • Waiting to act. Many taxpayers mistakenly assume there is nothing they can do after a levy — prompt calls to the bank and IRS usually improve outcomes.
  • Failing to document exempt funds — missing proof delays release.
  • Trying to resolve complex levy issues without professional help when business operations or large sums are at stake.

Resources and next steps

Related FinHelp guides

Professional disclaimer

This article is educational and does not replace personalized tax or legal advice. For help with your situation, consult a CPA, enrolled agent, or tax attorney — or contact the Taxpayer Advocate if you face immediate financial hardship (https://www.taxpayeradvocate.irs.gov/).