Bank Levies: How to Protect Your Hard-Earned Money

When the IRS or a state tax agency issues a bank levy, it can be one of the most stressful financial situations a person faces. A bank levy gives the government legal authority to seize funds directly from your bank account to satisfy an outstanding tax debt. If you’ve recently discovered your account has been frozen or drained, it’s critical to take immediate action — time is of the essence.

At Francetic Tax Resolution, we help individuals and business owners stop bank levies, recover seized funds when possible, and resolve the underlying tax issues that caused them.

What Is a Bank Levy?

A bank levy is the IRS’s way of collecting overdue taxes when previous collection efforts have failed. Before a levy is issued, the IRS typically sends a series of notices, including:

1. Notice and Demand for Payment – Your official tax bill.
2. Final Notice of Intent to Levy and Notice of Your Right to a Hearing (Letter 1058 or LT11) – Sent at least 30 days before a levy takes effect.

If you don’t respond within that time frame, the IRS can contact your bank and instruct them to freeze your account. The funds in the account are then held for 21 days before being sent to the IRS.

What to Do If You Receive a Levy Notice

If you’ve received a levy notice or your bank account has already been frozen, don’t ignore it. The situation can often be resolved — but only with quick, informed action.

Here’s what we can do for you:

• Stop the Levy and Release Frozen Funds – In many cases, we can negotiate with the IRS to release a bank levy, especially if it causes financial hardship or if you’re taking steps toward resolving your tax debt.

• Negotiate a Resolution – We’ll determine if you qualify for an Installment Agreement, Offer in Compromise, or Currently Not Collectible status.

• Ensure Future Protection – Once the levy is released, we’ll help you set up a long-term plan to prevent future collection actions.

How Francetic Tax Resolution Can Help

When you work with Paul Francetic, EA, you receive one-on-one representation from a seasoned tax professional who personally handles every aspect of your case. You won’t be passed around a call center — you’ll deal directly with the expert managing your resolution.

With over two decades of experience helping clients across Wisconsin and beyond, Paul has successfully represented individuals and businesses in securing levy releases and restoring financial stability.

Take Action Before It’s Too Late

A bank levy can drain your account and create a serious hardship — but you don’t have to face it alone. The sooner you reach out, the more options you’ll have to protect your assets and regain control.