Bank Levy
An IRS or State Bank Levy is a legal seizure of funds in a bank account to pay off taxes owed. When the levy is on a bank account, the Internal Revenue Code (IRC) provides a 21-day waiting period for complying with the levy. The waiting period is intended to allow you time to arrange to pay the tax or notify the IRS of errors in the levy. In the case of a bank levy, funds in the account are frozen as of the date and time the levy is received. Normally, the levy does not affect funds you add to your bank account after the date of the levy.