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How to Remove/Revoke Levy Against an Account

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Question: 
If we have placed a levy against an account, how does it get revoked or removed? Is there specific documents that we must receive in order to do so?
Answer: 

Assuming you are asking about an IRS levy, it attaches to funds, not to an account. If the IRS changes its mind about levying the funds their usual practice is to call the bank then follow up with a written release by fax or mail. Wait until you receive the written release before you release the funds.

In the meantime, the account can continue to operate; i.e. debits can be paid and deposits can be made as long as the amount of funds held in the account on the day of the levy's receipt is not reduced. Again, the levy is on the funds, not on the account.

First published on BankersOnline.com 4/23/12

First published on 04/23/2012

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