No. In most cases, if the IRS levies bank accounts in your name, a certificate of deposit will be subject to the levy. Often, if an early closeout of a CD would result in an interest penalty, the IRS will work with a taxpayer to avoid the penalty, but if a taxpayer shows no attempt to work with the IRS to address a tax obligation, the IRS can play "hardball", and demand the early withdrawal to get the tax bill paid.
Published on BankingQuestions.com 1/29/08
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
No. In most cases, if the IRS levies bank 