IRS Bank Levy Attorney in Massachusetts

Has the IRS frozen your bank account or taken action to seize funds for unpaid taxes? An IRS bank levy can immediately restrict access to money needed for mortgage payments, rent, household expenses, payroll, and business operations.

At GMD Tax Law, I represent individuals and business owners throughout Massachusetts facing IRS bank levies and other federal tax collection actions. I work directly with clients to evaluate active levies, pursue available relief, and address the underlying tax liabilities.

Contact GMD Tax Law to schedule a consultation about your IRS bank levy.

IRS Bank Levy Help in Massachusetts

An IRS bank levy is a serious collection action. Once the bank receives the levy, funds subject to it may become unavailable to the taxpayer. The bank generally must wait 21 calendar days before sending the levied funds to the IRS.

That holding period may provide an opportunity to evaluate whether the levy should be released. However, relief is not automatic, and waiting can significantly limit the practical options available.

My representation may involve:

Reviewing an active IRS bank levy and the applicable holding period
Evaluating grounds for full or partial levy release
Addressing financial hardship caused by frozen funds
Communicating directly with IRS collection personnel
Evaluating collection notices, assessments, and appeal rights
Developing a strategy to address the underlying federal tax liabilities
Evaluating the risk of additional bank levies or wage garnishment

GMD Tax Law provides IRS bank levy representation throughout Massachusetts, including Boston and Quincy.

What Is an IRS Bank Levy?

An IRS bank levy is an enforced collection action through which the IRS directs a financial institution to surrender funds belonging to a taxpayer toward an outstanding federal tax liability.

A typical bank levy reaches funds held when the financial institution receives the levy. Unlike a continuous wage levy, it generally does not automatically attach to money deposited afterward.

However, the IRS may issue additional levies if the underlying tax liability remains unresolved and applicable legal requirements are satisfied.

For more information, read How Many Times Can the IRS Levy Your Bank Account?

Why the 21-Day Bank Levy Holding Period Matters

Federal law generally requires a bank to wait 21 calendar days after receiving an IRS levy before surrendering the levied funds, subject to applicable exceptions and extensions.

During this period, the circumstances may permit consideration of a levy release, correction of an error, or other appropriate collection relief.

Once the bank transfers the funds to the IRS, obtaining their return may involve different legal standards and procedures.

If your bank account is currently frozen, prompt evaluation is particularly important.

Speak directly with a Massachusetts tax attorney about your bank levy.

Can an IRS Bank Levy Be Released?

Depending on the facts, federal law may require or permit the IRS to release a levy. Potential grounds can include economic hardship, satisfaction of the liability, certain installment agreements, legal defects in the levy, or other circumstances recognized by law.

Economic hardship may be relevant when a levy prevents an individual taxpayer from meeting reasonable and necessary living expenses. The IRS generally evaluates the taxpayer’s financial circumstances before determining whether relief is warranted.

A levy release does not necessarily cancel the outstanding tax debt. Even if frozen funds are released, the underlying liability may remain subject to collection unless an appropriate resolution is established.

What Happens If the IRS Has Already Taken the Money?

Once levy proceeds have been remitted to the IRS, the situation is different from a bank account that remains frozen during the holding period.

In certain circumstances, the return of levied property or funds may still be available under applicable law. The relevant facts, timing, legal grounds, and collection history become especially important.

Read What Happens After an IRS Bank Levy? Will They Take More Money? for additional information about continued IRS collection risks.

IRS Bank Levies Against Business Accounts

An IRS bank levy against a business account can interfere with payroll, vendor payments, rent, insurance, and other operating obligations.

Business collection matters may also involve payroll tax liabilities, responsible-person exposure, unfiled returns, or other compliance issues.

Because the financial consequences can extend beyond the amount frozen, a business bank levy should be evaluated in the context of the entire IRS collection case.

How I Handle IRS Bank Levy Matters

Immediate Case Evaluation

I review the available IRS account information, collection notices, affected accounts, and relevant financial circumstances to understand the enforcement action and available options.

Evaluation of Levy Release

I determine whether the facts support requesting a full or partial release, raising hardship concerns, or pursuing other legally available relief.

Direct IRS Representation

When retained, I communicate directly with the IRS concerning the collection matter and pursue an appropriate strategy based on the client’s circumstances.

Resolution of the Underlying Liability

Depending on the facts, available collection options may include an installment agreement, Currently Not Collectible status, an Offer in Compromise evaluation, or other appropriate relief.

Learn more about my broader IRS Tax Relief representation.

Future Collection Risk

Releasing one bank levy does not necessarily prevent future enforcement. I evaluate the unresolved liabilities, filing compliance, and collection status to address the risk of additional levies.

Why Choose GMD Tax Law?

Direct attorney representation: Work directly with Gregory M. Dzialo, Esq., LL.M. in Taxation.
Tax controversy focus: My practice concentrates on IRS and Massachusetts DOR disputes and collection enforcement.
Individualized legal analysis: Each matter is evaluated based on the actual facts, financial circumstances, and collection history.
Attention to the underlying tax problem: Representation focuses on available immediate relief and an appropriate longer-term resolution.

Frequently Asked Questions About IRS Bank Levies

How long does a bank hold money after an IRS levy?

A bank generally must wait 21 calendar days after receiving an IRS levy before surrendering the funds, subject to applicable exceptions and extensions.

Can the IRS levy the same bank account again?

Yes. A typical bank levy is not continuous, but the IRS may issue another levy if the tax debt remains unresolved and applicable requirements are satisfied.

Does an IRS bank levy take future deposits?

A typical bank levy generally reaches funds held when the levy is received. Later deposits ordinarily are not automatically subject to that same levy, although subsequent levies may reach additional funds.

Will an installment agreement prevent another bank levy?

An installment agreement may provide important protection against certain IRS collection actions while the agreement is in effect, subject to applicable legal requirements and exceptions.

Read Can the IRS Levy You While You Have an Installment Agreement?

Speak With a Massachusetts Tax Attorney About Your IRS Bank Levy

If the IRS has frozen your bank account, the time available to address the levy may be limited. A bank levy can disrupt personal finances or business operations, and the underlying tax liability may expose you to additional collection action.

At GMD Tax Law, I work directly with individuals and business owners facing IRS bank levies and other federal tax enforcement matters.