2 years, 1 month ago
via irs-answers.com
What happens to the money in an account if the IRS places a levy?
I have been notified that there is a levy on my checking and saving account and this paperwork says that they will pay the balance to the IRS after 21 days. What is going to happen to my account while they wait on the 21 days? Will my checks bounce that I have already written? Once the money is payed to the Internal Revenue Service will my account be returned to the same standing that it was before?
Has anyone else had this happen? If you have then what happened to the checks that are out in the mail right now?
Has anyone else had this happen? If you have then what happened to the checks that are out in the mail right now?
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M$1 Answer
The IRS is basically giving you 21 days to hire an Attorney or take action yourself to show cause why your funds should not be siezed. Your funds are now on hold and are unavailable for your use. Checks coming into the account will be returned and you will be denied any other withdrawls. If you deposit any additional monies to these accounts they will be attached. So you need to stop any automatic payments, payroll, to the accounts. The accounts will remain under IRS control and will not be released until your debt to them is paid in full. The Bank will also try to charge you fees for any returned checks outside of your account as they also do not have use of the funds. You can ignore these but you will need to go to another Bank when the debt is cleared up. Some Banks will even charge you monitoring fees for the IRS intrusion and for the wire transfer to the IRS. Face it your dead with this Bank. If you have not been to Court or have not had contact then a Lawyer could help to get your funds released. But if the IRS has gone this far I would guess you have been ignoring them or not paying as agreed. But in any event unless you cover all these costs you will be doing your banking elsewhere.
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