Texas Bank Levy Activity
IRS bank levy activity in Texas has increased significantly as the IRS cleared pandemic-era collection pauses. Houston and Dallas field offices have resumed aggressive levy programs, with automated systems identifying bank accounts through financial institution information matching.
The 21-Day Window
When the IRS levies a bank account, federal law requires the bank to hold funds for 21 days before sending to IRS. This window exists to allow taxpayers to resolve the underlying issue. During this period, you can negotiate release through hardship claims, payment plan establishment, or challenging the underlying assessment.
Prevention Strategies
Bank levies are preventable through proactive communication with IRS. Establishing an installment agreement, requesting Currently Not Collectible status, or submitting an Offer in Compromise all create 'levy hold' status. Once in an approved payment arrangement, the IRS cannot levy without the arrangement defaulting.
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