When the IRS notifies your bank of their intent to levy your bank account, your bank is legally obliged to comply. The money will go from your account to an escrow account for 21 days, giving you a chance to get the levy released or to pay the IRS through other means. If you are unable to make other arrangements with the IRS after the 21-day period, the IRS will apply the levy to the amount you owe.

Unlike wage garnishment levies, bank levies are not reoccurring, meaning that the IRS must issue a separate notification of a levy every time it attempts to seize money from your account. It cannot automatically take money you deposited into your account a day after the levy was served.

During the 21 days the IRS holds your money in escrow, there are several things you may be able do to try to have the bank levy lifted and the money returned to you. Perhaps the most sure-fire way is to pay your tax debt in its entirety. You may want to carefully consider taking out a bank loan, borrowing money from friends or paying your tax balance with a credit card. Another option is to attempt to set up a payment agreement with the IRS. (Remember that interest and late penalties will continue to accrue until your balance is paid in full.)

Bear in mind that unless the IRS has seized the entire balance of taxes it thinks it is owed (including interest and penalties), your experience with IRS collection efforts may be far from over. Unless you make alternate arrangements, the IRS may issue another bank levy, attempt to seize your property or issue a wage garnishment levy against you.

In fact, a bank levy may serve as an indication that you need to make resolving your tax debt a serious priority. If you have not already done so, you may want to consult with a tax professional, who will work with the IRS on your behalf to help you resolve your tax issues. Qualified tax pros should have several years of experience and will have dealt with bank levies and other complex IRS issues before. While it is usually unethical for tax pros to guarantee they can release you from an IRS bank levy, they may be able to use their familiarity with the IRS's procedures to present several workable options to resolve your debt.