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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3918
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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A few months ago, we received an IRS levy on our bank account

Customer Question

A few months ago, we received an IRS levy on our bank account and the bank cut them a check for a dollar and change as that what was in our account at the time. If we make additional deposits, will the bank automatically send to the IRS or would the IRS have to issue an additional levy.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor :

The IRS lien is actually on your rights in that account

Customer :

What does that mean?

NPVAdvisor :

In United States v McDermott you see that even "after acquired property" can be attached

NPVAdvisor :

That means that once the lien is on the account, it's there I would NOT deposit money into that account

Customer :

Even if the account has not been used in over 3 months?

Customer :

It's not an account we have been using.

NPVAdvisor :

An IRS tax lien protects and secures the IRS’s rights to your property. The lien attaches to property you own when it is filed, and property you purchase later

NPVAdvisor :

the levy is the means of collecting, but the lien is there as long as you owe the money

NPVAdvisor :

they can levy agains when they want

NPVAdvisor :

and they are quite savvy at makng the bank scared NOT to

NPVAdvisor :

THe lien is permanent

NPVAdvisor :

UNTIL you have a paid in full or release of tax line etter to give to the bank

NPVAdvisor :

(sorry for the typos)

NPVAdvisor :

I hope you'll rate my answer on its accuracy rather than any goods news/bad news content ...... Hopefully having all the facts will help you "see around some corners"

NPVAdvisor :

The IRS does not need to file a Federal tax lien as a prerequisite to levying your wages, bank accounts, etc. - just the Final Notice of Intent to Levy.

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

NPVAdvisor :

Let me know if you have other questons here, but again, they can levy again at any time, now that they have sent the final notice

NPVAdvisor :

Hope this has helped you

NPVAdvisor :

Lane

NPVAdvisor :

I still don't see you coming back into the chat. ... I'll move this to the "Q&A" mode ... Maybe that will help

NPVAdvisor :

(We can still continue a dialogue there, just not in real-time as we can here)

NPVAdvisor :

Let me know if I can help further

Expert:  Lane replied 1 year ago.

Hi Tammy,

 

Just checking back in, as I never saw you come back into the chat.

 

Again, I would not risk using that same account.

 

Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.

 

let me know

 

Lane

 

Expert:  IRS Solutions replied 1 year ago.
Actually, the bank levy attaches only to funds on account at the time the bank receives the levy. You can go about normal business banking the following day, including depositing funds into the account and these newly deposited funds will not be sent to the IRS.

If you need further assistance contact me and I will provide ACCURATE information.

Steve
Expert:  Lane replied 1 year ago.

Steve is correct, (on the levy issue).

A levy is a one time shot.

I stand corrected, (if you know for sure that a lien has not been acquired)

Now, if the IRS does have a lien, that DOES mean that they have the ability to levy at any time.

BUT, if all they did was levy, then you are OK.

ALTHOUGH, I wouldn't be so cavalier as to to say "You can go about normal business banking the following day, including depositing funds into the account and these newly deposited funds will not be sent to the IRS."

You need to clarify whether or not a tax lien has been executed.

... a slightly different (but more careful) answer.

Lane

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