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

Your Money’s Gone—But Not All Hope Is Lost

If you woke up to a frozen bank account or saw that the IRS took thousands of dollars from your checking or business account, you're not alone.

Bank levies are one of the most aggressive collection tactics the IRS uses—and once the funds are gone, getting them back isn’t easy… but it can be done in certain situations.

This post explains when and how the IRS seizes bank funds, whether you can recover the money, and what steps to take next to protect yourself.

What Is a Bank Levy?

A bank levy occurs when the IRS sends Form 668-A to your bank, ordering them to freeze your account and remit the funds to cover unpaid tax debt.

Key facts:

• The account is frozen on the day the bank receives the levy
• You have 21 days before the bank sends the money to the IRS
• After 21 days, the IRS receives the funds and applies them to your balance

Related: IRS Bank Account Levy in California – What to Do When Your Funds Are Frozen

Can You Get the Money Back?

✅ Yes—in limited circumstances.

You may be able to recover funds if you act before the 21-day window closes, or even after, if you qualify for one of the following:

1. Financial Hardship

If the levy caused a financial crisis (e.g., rent unpaid, payroll missed, utilities disconnected), the IRS may agree to reverse the levy and return the funds.

2. IRS Error

If the IRS levied:

• Without sending a Final Notice of Intent to Levy
• After the statute of limitations expired
• Without honoring an active payment plan or appeal

…you may be eligible for reversal.

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

3. Improper Account

If the levy pulled funds from an account not owned by you (e.g., a business partner or spouse), you may be able to file a claim to recover those funds.

What to Do If You Want Your Money Back

Step 1: Act Before the 21 Days Expire

If the money hasn’t been transferred yet:

• Call the IRS immediately
• Request a hold or levy release
• Submit Form 433-A to demonstrate hardship
• Propose an Installment Agreement or Offer in Compromise

Step 2: If the Funds Are Already Gone

File a:

• Request for Return of Wrongfully Levied Property under IRC §6343
• CAP appeal or Taxpayer Advocate request
• Civil claim under limited circumstances, especially if IRS protocol wasn’t followed

Can You Sue the IRS?

Sometimes—under IRC §7433, if:

• The levy violated your rights
• The IRS ignored proper procedures
• You suffered documented damages

You must exhaust all administrative remedies first (CAP appeal, Advocate request, etc.).

We Help Orange County Taxpayers Recover After IRS Levies

At Boulanger CPA and Consulting PC, we:

• Respond fast to IRS bank levies
• File hardship-based release requests
• Pursue levy reversal when possible
• Resolve the underlying tax debt to prevent future seizures

Call (657) 218-5700 or schedule emergency help at www.orangecounty.cpa

FAQ: IRS Bank Account Seizure

Q: Is it too late to stop the levy if my account is already frozen?
A: No. You have 21 days from the freeze date to act before the IRS takes the money.

Q: Can I get my money back after the 21 days?
A: It’s harder—but possible in hardship or error cases.

Q: What if the IRS didn’t notify me?
A: You may have grounds for reversal if the notice wasn’t properly sent.

Q: Can this happen again?
A: Yes—unless you resolve the debt, the IRS can issue more levies.

📣 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.