Have a Tax Question? Ask a Tax Expert
If we levy your wages, salary, federal payments or state refunds, the levy will end when:
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.
can the state do that if that is the only money I have? I cannot even purchase groceries or take care of my daughter
The department's levies are a single action. They allow us to take only the amount in the accounts at the time the financial institution receives the levy. If the accounts do not have sufficient funds to pay the amount listed in full, the Department of Revenue would have to issue another levy to attach to amounts deposited after the bank received the first levy.
The Department of Revenue prefers to resolve delinquent accounts by voluntary actions. If your account still has a balance and you contact the agent listed on the levy, you will be able to discuss other options to resolve your account. These options can include a payment plan.