I have had a tax lien put on my account. I understand that it will be there for at least 21 days. My question is, will any money I put into the account from here on out be accessible, or will that be put on hold also?
An IRS tax levy attaches to accounts on the day it is received, and it captures balances that are in the account at that point in time. The 21-day period a bank waits before turning the funds over to the IRS stems from the Taxpayer's Bill of Rights law and is intended to provide ample opportunity for the person whose account is affected to straighten out errors or mistakes, or convince the IRS his/her delinquent taxes have been paid. The funds get frozen immediately, but are remitted to IRS the first business day after the 21st calendar day after the notice of levy is received. Deposits made in the meantime aren't affected, but could, of course, be subject to future levies.
If the tax levy is from a governmental unit other than the federal government, different laws and procedures apply. Get more information about IRS levies on bank accounts from this quiz on our sister site, BankersOnline.com.
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