What is a Notice of Intent to Levy?
A Notice of Intent to Levy or CP90 is the last of several notices that inform a taxpayer that the IRS will start to seize assets. The Notice of Intent to Levy is only sent if you have failed to make outstanding payments on your taxes. If you did not respond appropriately to the other notices, the Final Notice of Intent to Levy declares that within thirty days of the posted date on the letter, the IRS will levy your wages, bank account, or other available assets.
An IRS bank account levy is when the IRS seizes money from your bank account to cover your tax debt. If the IRS has sent repeated notices demanding payment and you haven’t paid or tried to set up other arrangements, the IRS may issue a bank levy. When this happens, the bank freezes access to your account and eventually sends the funds to the IRS. The IRS cannot freeze and seize monies in your bank account without proper notice. Once your bank receives a notice of seizure of your funds, your bank has an obligation to hold the money for at least 21 days before paying it to the IRS. You must contact the IRS immediately to negotiate either a partial or a full release of your funds. This is another tactic by the IRS to get the taxpayers attention.
Under federal law, the IRS must release your bank account if:
The IRS may consider releasing your funds when:
Some ways to stop an IRS Levy:
If the IRS has frozen your bank account and/or is threatening to seize the monies in your account, it is in your best interest to consult a licensed Enrolled Agent. We would love to talk to you more about your levy problems.