When the IRS issues a notice that it intends to levy or seize the money in your bank accounts, or any of you other financial assets, you have only 30 days to respond and three basic options:
- Pay the amount due in full
- Resolve the tax debt by entering into an installment agreement or making other arrangements
- Challenge the bank levy
If you cannot pay your tax debt in full before the IRS is scheduled to seize your accounts or assets, an installment agreement may be your best option. Making monthly payments on your tax debt is easier than paying it all at once, but that may also lead to you paying more in total depending on the amount you owe and the number of years it will take to resolve the debt.
Other types of tax resolution arrangements may also be available to you, depending on your situation. The main thing to remember is that working with the IRS is usually to your advantage, and it will help you avoid the negative and lasting consequences a bank levy can bring.