IRS Levy After Bankruptcy – Is It Legal?

IRS Levy After Bankruptcy – Is It Legal?

You filed for bankruptcy. You got the discharge. And yet… the IRS is still trying to collect.

Is this legal?

Sometimes yes. But if the IRS levies after a proper bankruptcy discharge, you may be able to get the levy removed and the money refunded.

Here’s how it works.

What Happens to IRS Debt in Bankruptcy?

In Chapter 7, certain IRS debts may be discharged if:

• The return was due at least 3 years ago
  
  
• The return was filed at least 2 years ago
  
  
• The tax was assessed at least 240 days before filing
  
  
• No fraud or evasion is involved
  
  

If all conditions are met, the IRS cannot legally enforce that debt—including levying your wages or bank accounts.

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

When Can the IRS Levy After Bankruptcy?

The IRS can levy after bankruptcy if:

• The debt was not discharged
  
  
• You filed Chapter 13 and the case was dismissed
  
  
• The IRS was excluded from your creditor list
  
  
• You accrued new debt after the bankruptcy
  
  

Related: IRS Garnished My Wages Without Notice – Is That Legal?

What If the IRS Is Wrong?

If you were discharged and the levy is illegal:

• Request an immediate levy release
  
  
• Provide your discharge order and case number
  
  
• File Form 911 for Taxpayer Advocate intervention
  
  
• Consider filing a wrongful levy claim under IRC §6343

We Help California Taxpayers Stop Post-Bankruptcy IRS Levies

At Boulanger CPA and Consulting PC, we:

• Identify whether IRS debt was properly discharged
  
  
• File for levy release or reversal
  
  
• Communicate directly with IRS collections
  
  
• Protect your rights under bankruptcy law
  
  

📞 Call (657) 218-5700 or visitwww.orangecounty.cpa

FAQ Highlights

📣 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.