Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Tax Levies and other Tax Relief topics.
DebtHelp.com Tip: The bank levy process is complicated when it involves a jointly owned bank account. The bank must pay over all of your bank account funds in response to an IRS levy. It is only then that the co-owner (joint owner) not responsible for the unpaid taxes can file a wrongful levy action. This wrongful levy action will, hopefully, give him or her back the bank levy funds taken away. When you have reached the point in the collection process of having an IRS tax levy against you, one of the first accounts the IRS will seize will be your bank account.
The IRS can take money from your savings, checking, and any other bank accounts in order to satisfy your unpaid tax bill. In other words, they can clear out your bank accounts.
This levy process is the most easily done of any enforced collection process. The transaction is completed with the simple click of a computer key. A computer-generated levy form is sent to any financial institution holding your funds.
Of interest is the fact that once your banking institution receives notice of the levy, it must hold the funds you have on deposit for 21 days. They must hold an amount up to the amount of unpaid taxes you owe. The 21-day holding period is given to dispel any issues regarding who owns the account (as in a joint or co-partnership account). The IRS is sent the deposit money, plus any applicable interest after the 21 days.