Welcome. THANK YOU for choosing Just Answer. My name is Angela and my goal is to help make YOUR life, a little...LESS taxing.
Q: I was told they could only take a percentage of the available funds, is this correct?
A: I'm sorry to hear about your dilemma. Unfortunately, the IRS
can take all of the funds that are in the bank account the day that the bank receives the levy request. The bank has to hold on to the funds for 21 days before submitting them to the IRS. the reason for this is because they want to make sure that they have the correct account and to give the taxpayer an opportunity to rectify the situation. It is true that they can only garnish a certain amount of your wages, but when bank accounts, not making lite of the matter, they can drain the account dry of whatever funds are in the account on that day the bank receives the levy notice. In order for them to keep levying the bank account, they will need to keep sending the bank levy notices. Since the levy is causing a harship, you should do the following;
If a levy on your wages, bank account or other property
is causing a hardship you should:
Contact the IRS at the telephone number on the levy or correspondence immediately (1-800-829-1040) and explain your financial situation. Service is available from 8 a.m. to 8 p.m. local
time, Monday through Friday.
Levying Your Wages, Federal Payments, State Refunds, or Your Bank Account
If we levy your wages, salary, federal payments or state refunds, the levy will end when:
- child">The levy is released,
- You pay your tax debt, or
- The time expires for legally collecting the tax.
If we levy your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This holding period allows time to resolve any issues about account ownership. After 21 days, the bank must send the money plus interest, if it applies, to the IRS. To discuss your case, call the IRS employee whose name is shown on the Notice of Levy.
Please let me know if I can be of further assistance to you regarding this matter.
Thank you again for using JUST ANSWER.