Bank Levy Release

Contractor Recovers Levied Job Deposit

Deposit recovered

Illustrative outcome

This is an illustrative example of our work in bank levy release. Below is the situation, how an IRS Enrolled Agent approaches it, the outcome those tools can produce, and what it means for anyone facing something similar.

Focus area

Bank Levy Release

Result

Deposit recovered

Client

General contractor

The client & the challenge

A levy captured a client deposit earmarked for materials, stalling an active job.

Our approach

Showed the funds were held for a third party and negotiated release alongside a payment plan.

How we build the resolution

1
Act inside the holding window
A bank levy holds funds before remitting them to the IRS. We file Power of Attorney and contact the IRS immediately to work the release before that window closes.
2
Document hardship
We show that the levy prevents covering necessary living or payroll expenses, which is the basis for an economic-hardship release.
3
Put a resolution on file
A levy comes off cleanly when the account moves to a plan or hardship status, so we establish that at the same time to stop it reissuing.
4
Confirm the release
We verify the release reached the bank and that collection is coded correctly so the funds are freed and the account does not re-levy.

The outcome

The deposit was returned and the job continued.

Deposit recoveredin this example

Understanding a bank levy release

A bank levy freezes funds in your account and, after a holding period, sends them to the IRS. Acting inside that window is what preserves the money.

Facts worth knowing

The bank holds levied funds for a set period before remitting them.
Demonstrating economic hardship can support a release request.
Putting a resolution in place — a plan or hardship status — stops the levy from reissuing.
Speed matters: the release has to be worked before the holding period ends.

Frequently asked questions

The IRS just levied my account — is it too late?

Often not. The bank holds the funds for a set period before sending them to the IRS. If we act inside that window, the money can be released.

What gets a levy released?

Demonstrated economic hardship and putting a resolution in place. Once the account is on a plan or in hardship status, the levy comes off and stops reissuing.

Can the IRS levy again?

Not while an agreement or hardship status is in place. That is why we resolve the balance at the same time as the release.

Key takeaways

Outcome in this example: Deposit recovered.
Service applied: Bank Levy Release.
Handled by a federally licensed IRS Enrolled Agent, start to finish.
Available to individuals and businesses nationwide.
The sooner you act, the more options remain — penalties and interest keep accruing.

Facing something similar?

Get a free, no-pressure consultation with a licensed IRS Enrolled Agent who can tell you exactly where you stand.

Book a Free Consultation (562) 925-7100

This case study is an illustrative example of the types of matters we handle and the tools we use. It is a composite created for explanation and does not describe a specific client, and any figures shown are examples rather than actual client outcomes. Every case is different: your result depends on your own facts and on IRS determinations, and no particular outcome is promised.

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