Yes, the IRS can take money directly from your checking account through a process called a levy
A levy is a legal seizure of your money or property to pay a tax debt. When the IRS issues a levy against your bank account, the bank must freeze the funds and hold them for a set number of days — usually 21 days — before sending the money to the IRS. During that time, you cannot withdraw the money, and checks you wrote before the levy may bounce.
The IRS does not need a court order to levy your bank account the way a creditor does. Once you owe back taxes and the IRS has followed specific steps, they have the power to do this on their own. However, they cannot straightforward freeze your account without warning — they must send you notices first, and you have the right to object before the levy happens.
Key Takeaways
- The IRS sends a Notice of Intent to Levy at least 30 days before freezing your account, giving you time to respond or make a payment arrangement.
- Your bank must hold the frozen money for 21 days before sending it to the IRS, during which time you can request the levy be released.
- Certain funds in your account may be protected from levy, including Social Security deposits and some other federal benefits, though the bank may not know which ones are protected.
- If you receive the levy notice, you can request a hearing with the IRS to discuss payment plans, hardship, or other options before the money is taken.
What happens when the IRS sends a levy to your bank
The IRS sends a formal document called a Notice of Levy directly to your bank. This document tells the bank to freeze your account and hold all the money in it. The bank then sends you a notice — usually within a few days — telling you that your account has been levied and when the money will be released to the IRS.
During the 21-day holding period, you cannot withdraw money from the account. Any checks you wrote before the levy arrived at the bank will likely bounce, which can trigger overdraft fees and create problems with the people or businesses you wrote them to. Direct deposits that arrive during the holding period may also be frozen, though federal benefits like Social Security have some protection (see below).
After 21 days, the bank sends the full balance to the IRS. If you have multiple accounts at the same bank, the IRS can levy all of them. If you have accounts at different banks, the IRS must send a separate levy to each one.
The notices you receive before a levy happens
The IRS must send you written notice before they levy your bank account. The first notice is called a Notice and Demand for Payment, which tells you that you owe taxes and asks you to pay. If you do not pay or respond, the IRS sends a second notice: the Notice of Intent to Levy. This notice tells you specifically that the IRS plans to levy your bank account, and it must arrive at least 30 days before the actual levy.
The Notice of Intent to Levy is your chance to act. You can contact the IRS during those 30 days to set up a payment plan, request a hardship delay, or ask for a hearing to dispute the debt. Many people miss this window because the notice goes to an old address or gets lost in mail. If you receive a notice from the IRS about back taxes, do not ignore it — call the number on the notice or contact a tax professional when ready.
What money in your account is protected from levy
Not all money in your checking account can be levied. Federal benefits deposited into your account have some protection, including Social Security, Supplemental Security Income (SSI), Veterans benefits, and federal employee retirement payments. The IRS cannot take these funds, even if they are in your account when the levy arrives.
However, the bank may not automatically protect these funds — you may need to tell the bank which deposits are federal benefits, or the bank may freeze everything first and require you to prove which money is protected. If your account is frozen and you receive Social Security or other federal benefits, contact your bank when ready and ask them to release the protected funds. You may need to provide documentation from the benefit program showing the deposit dates and amounts.
Money you earned from work, savings, tax refunds, and most other deposits do not have this protection and can be levied. If your account contains a mix of protected and unprotected funds, the bank will typically freeze the entire account and hold it all for 21 days while you sort out which money is protected.
How to stop a levy before it happens
If you receive a Notice of Intent to Levy, you have 30 days to take action. The fastest option is to call the IRS phone number on the notice and set up a payment plan or installment agreement. If you can pay the full amount owed, do so when ready — the IRS will cancel the levy. If you cannot pay in full, the IRS offers several payment plan options that may stop the levy from happening.
You can also request a Collection Due Process hearing, which is a formal meeting with an IRS official to discuss your situation. At this hearing, you can explain financial hardship, dispute the amount owed, or propose a payment arrangement. Requesting a hearing does not automatically stop the levy, but it pauses the process while the IRS reviews your case.
If you cannot pay and do not have a valid reason to dispute the debt, you can request Currently Not Collectible status, which temporarily pauses collection efforts. This does not erase the debt, but it stops the IRS from taking action for a period of time while you work on your finances.
What to do if your account has already been levied
If your bank account has already been frozen, you still have options during the 21-day holding period. Contact the IRS when ready at the number on your bank's levy notice. Explain your situation — if you have a genuine financial hardship, the IRS may release the levy before the 21 days are up.
You can also contact your bank and ask them to identify which funds in your account are protected federal benefits. If part of the money is protected, the bank may release that portion before sending the rest to the IRS. Get the bank's procedures in writing, as different banks handle this differently.
If the IRS has already taken the money, you can request a Collection Appeal to ask them to return it or work out a payment plan. This process takes longer, but it is still worth pursuing if the levy caused you genuine hardship or if you believe the debt is incorrect.
The difference between a levy and a wage garnishment
A levy on a bank account is different from a wage garnishment, though the IRS can use both. A levy takes money that is already in your account. A garnishment tells your employer to withhold a portion of your paycheck and send it to the IRS. The IRS can do a wage garnishment without a court order, just like a bank levy, but it follows different rules and timelines.
If the IRS is collecting from you, they may use both methods at the same time — garnishing your wages and levying your account. If you set up a payment plan, both should stop. If only one stops and the other continues, contact the IRS to clarify which collection actions are still active.
Frequently Asked Questions
Can the IRS levy a joint checking account?
Yes, the IRS can levy a joint account if one of the account holders owes back taxes. The entire balance is frozen, even if the other account holder did not incur the tax debt. The other person can request that their portion be returned, but this requires proving which deposits belong to them and which belong to the person who owes taxes.
What happens to automatic bill payments when my account is levied?
Automatic payments set up before the levy will likely fail because the account is frozen. Contact your service providers (utilities, insurance, loan companies) and let them know your account has been levied so they do not report you for non-payment. Once the levy is released or resolved, you can restart automatic payments.
Can the IRS levy my account if I am on a payment plan?
No, if you have an active payment plan with the IRS, they should not levy your account. However, if you miss a payment on the plan, the IRS may resume collection action, including levies. Stay current on your payment plan to keep the levy from happening.
How long does it take to get my money back after the levy is released?
If the IRS releases the levy before the 21 days are up, your bank should unfreeze the account within one to three business days. If the full 21 days pass and the money is sent to the IRS, getting it back requires filing a claim or appeal, which can take several weeks or months.
Can I get a refund if the IRS levied my account by mistake?
Yes, if the IRS levied the wrong account or the wrong person, you can request a refund. Contact the IRS when ready with proof that the levy was in error. You may need to provide documentation showing the account does not belong to the person who owes taxes, or that the debt has been paid or resolved.