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IRS Bank Levy: The 21-Day Hold and How to Get Money Released

By the Tax Relief Answers editors · Sources checked November 3, 2026 · How we check

The short answer

When the IRS levies your bank account, the bank freezes the money that is in the account at that moment and must hold it for 21 days before sending it to the IRS. That waiting period is written into the law at 26 U.S.C. 6332(c), and the IRS says its purpose is to give you time to contact the IRS, arrange payment or report an error. Money you deposit after the levy date is normally not affected, according to the IRS page on bank levies.

What the 21 days are for

A bank levy (Form 668-A) is a one-time grab, not a continuing one like a wage levy. The bank freezes funds "as of the date and time the levy is received," in the IRS's words, and after 21 days sends them to the IRS. During those 21 days the money is still in the account and has not yet left. You can use the window in three ways.

The IRS states it is required to release a levy when you paid the amount owed, the collection period ended before the levy was issued, releasing the levy will help you pay, you entered an installment agreement whose terms do not allow the levy, the levy creates an economic hardship, or the property is worth more than the amount owed. A levy on someone else's money (the IRS gives the example of an elderly parent's account) can be contested by that person or their power of attorney, who may be asked for proof of ownership. If the levy was issued in error and the bank charged you a fee, Form 8546 asks the IRS to reimburse it.

The notices that come first

A bank levy follows the same notice sequence as a wage levy. The IRS must send a final notice (LT11 or Letter 1058) at least 30 days before the first levy, under 26 U.S.C. 6330, and you can request a Collection Due Process hearing in those 30 days. If you never received that notice at your last known address, say so when you call: it is one of the grounds for release. See LT11 and Letter 1058.

Steps

1. Call the IRS at the number on your copy of Form 668-A the same day, before the 21 days run. Ask what balance and tax years the levy covers.
2. If the money is for rent, food, utilities or medicine, say the word "hardship" and be ready to list your monthly income and basic expenses. The IRS can release a levy that causes immediate economic hardship.
3. If you can afford monthly payments, set up the IRS's own payment plan online before you call back, then ask for the release based on the plan.
4. If the money is not yours, or the tax was paid, gather the bank statements or payment confirmations and ask for a wrongful-levy release.
5. If the request is denied, you may appeal before or after the funds are sent (Publication 1660). After proceeds reach the IRS you may still file a claim to have them returned.
6. Fix the cause. A levy that is released can be issued again if the balance stays unresolved and no plan or hardship status is in place.

What the levy does not reach

It does not reach deposits made after the levy date, so your next paycheck lands in a usable account unless a new levy is issued. It does not continue month after month on its own; each bank levy is a separate action. It does not cancel the debt when it ends, and penalties and interest keep adding until the balance is paid.

Companies that advertise "stop a bank levy" services make the same phone call you can make. A licensed professional (enrolled agent, CPA or attorney) can make it for you with a power of attorney, and a Low Income Taxpayer Clinic can do so free if your income qualifies.

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