IRS Levied My Client – What to Do as Their Accountant or Bookkeeper

Don’t Panic—There’s a Process for This

If you’re an accountant, bookkeeper, or payroll provider and just found out the IRS levied your client’s bank account or wages, you’re not alone. These situations happen fast—and often with very little warning.

But as the financial professional on record, your actions can either make the situation worse—or turn you into the trusted advisor your client needs most.

This blog walks through exactly what to do when your client is levied, what forms and strategies are involved, and how to protect your client from further IRS enforcement.

What Does It Mean When a Client Has Been Levied?

An IRS levy means the government has seized property or money from your client. This can take the form of:

• Wage garnishment (via Form 668-W)
• Bank account levy (via Form 668-A)
• Accounts receivable seizure
• Business asset seizure (rare)

Levies typically happen after a Final Notice of Intent to Levy has been issued and ignored for 30 days.

Related: IRS Notice of Intent to Levy – Urgent Steps to Take

Step 1: Confirm What Type of Levy Occurred

Determine:

• Which IRS notice triggered it
• Whether it’s a continuous wage garnishment or one-time bank levy
• What IRS office is handling the case
• If the client is represented—or needs urgent CPA representation

Related: IRS Levy vs IRS Lien – What’s the Difference?

Step 2: Determine the Client’s Immediate Risk

Help your client assess:

• Payroll exposure (if wages are being garnished)
• Cash flow disruption (if accounts are frozen)
• Vendor or receivables interference (if IRS is contacting customers)
• Whether the levy jeopardizes basic business operations

If the levy caused a cash flow crisis, you may need to help prepare hardship documentation for immediate release.

Related: IRS Levied My Business – What Are My Rights and Options?

Step 3: Organize Financials for Resolution

You’ll need to help prepare:

• Form 433-A or 433-B (Collection Information Statement)
• Most recent tax returns (business and/or personal)
• Bank statements, income proof, and expense documentation
• If a business: payroll summaries, AP/AR, profit & loss

Accurate, complete financials give the IRS a reason to stop or reverse enforcement.

Related: IRS Seized My Bank Account – Can I Get the Money Back?

Step 4: Help Them Choose a Resolution Strategy

Common options include:

• Installment Agreement
• Offer in Compromise
• Currently Not Collectible
• Filing a Collection Due Process or CAP appeal

As their trusted advisor, you can help them decide which path is best—or refer them to a tax resolution CPA to handle negotiations.

Step 5: Communicate With Payroll, Vendors, or Lenders

You may need to:

• Alert the client’s payroll provider about garnishment notices
• Help manage cash flow during the levy period
• Document IRS releases or payment plans for lenders or vendors
• Prepare client for documentation requests during underwriting or audits

We Help Accountants and Bookkeepers Support Their Clients During IRS Levies

At Boulanger CPA and Consulting PC, we:

• Handle urgent IRS levy release negotiations
• Work with payroll providers and lenders
• Draft resolution packages quickly and professionally
• Take over IRS communications on your client’s behalf

Call (657) 218-5700 or refer a client directly at www.orangecounty.cpa

FAQ: What to Do When Your Client Is Levied

Q: Can I talk to the IRS for my client?
A: Only if you're an EA, CPA, or attorney with a signed Form 2848 Power of Attorney on file.

Q: Can my client get the money back?
A: Possibly—if the levy caused hardship or the IRS made a mistake.

Q: Do I need to amend prior returns to resolve this?
A: Sometimes. But you should prioritize stopping the levy first.

Q: Can a bookkeeper handle this alone?
A: No. Levy resolution often requires licensed representation and legal strategy.

📣 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.