How a Family Recovered Frozen Funds After an IRS Bank Levy

The IRS froze the account holding their rent money. Acting inside the 21-day window saved it.

Client

Married couple, Washington

Owed → Outcome

$17,500Frozen funds saved

Resolution

Levy release

Illustrative client scenarios based on common case types. Individual results vary.

The situation

A married couple in Washington logged in to find their checking account frozen by an IRS bank levy over a balance of about $17,500. The account held that month’s rent and bills. After a 21-day holding period, the bank would send the money to the IRS — and the clock was already running.

What we did

  1. We acted the same day they called, well inside the 21-day window before funds are remitted.
  2. We contacted the IRS and documented the economic hardship the levy was causing.
  3. We arranged an acceptable alternative — a plan to resolve the underlying balance — so the IRS would release the levy.
  4. We confirmed their returns were filed so nothing blocked the release.

The outcome

The IRS released the levy before the 21 days expired, and the bank unfroze the account. The couple kept the funds they needed for rent, and the remaining tax balance is now being handled through an affordable arrangement.

The 21-day clock is everything

A levied bank account holds the funds for 21 days before sending them to the IRS. Acting inside that window is the difference between recovering your money and losing it.

Account levied? Every day counts — call now.

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Frequently Asked Questions

Funds are held for 21 days before going to the IRS. Within that window we can request a release based on hardship or an arranged resolution. After remittance, recovery is much harder.
A levy is a one-time grab of funds present that day, but the IRS can issue new levies until the debt is resolved. That is why we move to settle the underlying balance, not just the single levy.

About these stories

Illustrative client scenarios based on common case types. Individual results vary. These scenarios are composites drawn from common case types we handle at US Certified Tax Services; they are not specific named clients and are provided for illustration only. Outcomes depend on your individual facts and IRS determinations. For a review of your situation, request a free consultation.

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