A bank levy is issued by the Internal Revenue Service when your taxes remain unpaid and resolution has not been reached. The IRS will freeze your bank accounts and seize any money in your bank account up to the amount that you owe, including penalties and interest.
The Internal Revenue Service has 10 years to collect outstanding tax liabilities, from the date assessed. The 10-year mark is calculated from the day a tax liability has been finalized. A tax liability can be finalized in a number of ways. It could be a balance due on a tax return, an assessment from an audit, or a proposed assessment that has become final.
