Bank Levy

Full Definition

A bank levy is when the IRS contacts your bank and instructs them to freeze your account and send the funds to the IRS. Once a bank levy is issued, your bank must hold the funds for 21 days before sending them to the IRS. This 21-day period gives you time to resolve the issue or claim an exemption. During this time, you cannot access the levied funds. A bank levy is a one-time action (unlike a wage garnishment), but the IRS can issue multiple levies.