IRS Levied My Joint Account – What If the Money Isn’t Mine?
The IRS Took Money That Doesn’t Belong to Me—Now What?
If the IRS levied a joint bank account to collect on your tax debt—or your spouse’s or ex-spouse’s—and the money they took wasn’t yours, you may be able to get it back.
Joint accounts are common for married couples, business partners, or family members. But when one person owes the IRS, both parties may be affected—even if only one of them is the taxpayer under collection.
In this blog, we explain how IRS joint account levies work, when the money can be returned, and how to protect yourself and your co-owner from further harm.
Why Did the IRS Take Money from a Joint Account?
If the IRS levies a bank account and your name is on it, the agency assumes you have access to the funds. That’s enough to trigger the levy—even if:
- Most of the money belongs to someone else
- You only use the account for convenience or bill sharing
- You are no longer legally responsible for the person who owes
Once the levy hits, the funds are frozen immediately. After 21 days, the money is sent to the IRS unless action is taken.
For many, this starts with responding to an IRS notice of intent to levy, which is the formal warning the IRS must send before freezing accounts. Ignoring that notice often results in an IRS bank account levy in California that drains joint funds without distinction.
Who Can File a Claim?
The non-liable co-owner (the person who doesn’t owe the tax) can submit a claim for return of wrongfully levied funds under IRC §6343.
To succeed, they must prove:
- They contributed the funds
- They did not owe the IRS debt
- The funds were not commingled with the taxpayer’s assets
Many clients come to us after saying: IRS seized my bank account even though the money was theirs, not the taxpayer’s. These are exactly the situations where a wrongful levy claim applies.
How to File a Third-Party Claim for Wrongful Levy
Step 1: Gather Documentation
- Bank statements
- Paystubs or deposit records
- Evidence of ownership or account history
- Divorce decree or prenuptial agreement (if applicable)
Step 2: Submit a Written Claim
Send your claim to the IRS Advisory Office listed on the notice, along with:
- A letter explaining the wrongful levy
- Copies of supporting documentation
- A request for prompt refund or release
The IRS will investigate, which may take 30–90 days or longer.
Step 3: If Denied, You May Sue
If the IRS denies your claim, you may have the right to:
- File a lawsuit under IRC §7426
- Claim compensation under IRC §7433 for unauthorized collection
This is rare—but sometimes necessary in high-dollar or clearly mistaken levies.
What If You’re Divorced or Separated?
The IRS will not automatically know who “owns” the money. You must provide:
- Evidence that deposits came from you only
- Court orders or divorce agreements showing who controls the funds
- Statements showing separate contributions or spending
This can help you recover levied funds you didn’t owe.
How to Protect Yourself from Future Joint Account Levies
- Avoid joint accounts with people who owe back taxes
- Keep clear documentation of who deposits what
- Consider removing yourself from joint ownership if your spouse has IRS debt
- Monitor IRS collection activity and act before levies are issued
Preventive action is key—sometimes can you stop an IRS levy after it starts depends on how quickly you respond, but the better approach is avoiding IRS levies before they start altogether. For wage earners, understanding IRS wage garnishment enforcement is equally critical to prevent paycheck disruptions.
We Help Orange County Taxpayers Recover Money from Joint IRS Levies
At Boulanger CPA and Consulting PC, we:
- Respond to joint levy notices
- File third-party wrongful levy claims
- Recover funds levied in error
- Resolve IRS debt to prevent future action
We also encourage taxpayers to explore more in Defend What’s Yours, because protecting your finances requires knowledge, preparation, and the right defense strategies.
Call (657) 218-5700 or request urgent levy help at www.orangecounty.cpa
Frequently Asked Questions
Can the IRS levy a joint bank account?
Yes. The IRS can levy any account with your name on it, even if the money belongs partly—or entirely—to someone else.
What happens to funds that don’t belong to me?
Co-owners of a joint account can file a claim with the IRS showing proof that certain funds belong to them and should be released from the levy.
How do I prove the money isn’t mine?
You must provide documentation such as pay stubs, benefit records, or bank statements showing the source of the funds. The IRS may release that portion after review.
How long do I have to act?
Banks must freeze funds for 21 days before sending them to the IRS. You must act quickly to protect funds that aren’t yours.
Can I stop future levies on joint accounts?
Yes. Options include negotiating an installment agreement, submitting an Offer in Compromise, or requesting Currently Not Collectible status to prevent repeated levies.
Does California law protect joint account holders?
Not directly. IRS rules control federal levies. However, California co-owners may still file claims to prove ownership of funds in a joint account.
Will the IRS return money after it’s sent from the bank?
It’s rare, but if you can prove ownership after funds are sent, you may be able to request a refund. Acting during the 21-day hold is far more effective.
Should I seek professional help for a joint account levy?
Yes. These cases are complex and time-sensitive. A tax professional can help protect co-owners, file claims, and negotiate IRS relief options.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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