Yes, the IRS can levy funds from a joint bank account if:
- The taxpayer has the right to withdraw funds from the account, even if they did not deposit the funds.
- The IRS has followed the proper procedures for issuing a bank levy.
Joint Bank Account Levies
The IRS can seize funds in a joint bank account to satisfy a taxpayer’s delinquent tax debt, regardless of who deposited the funds. This is because the IRS has the authority to levy any assets that the taxpayer has the right to access, including funds in a joint bank account.
Exceptions
There are a few exceptions to the rule that the IRS can levy joint bank accounts. For example, the IRS cannot levy funds in a joint bank account if:
- The account is owned by a non-liable spouse who did not file a joint tax return with the taxpayer.
- The account is owned by a non-liable third party who can prove that the funds in the account do not belong to the taxpayer.
Protecting Your Assets
If you are concerned about the IRS levying your joint bank account, there are a few steps you can take to protect your assets:
- Notify your joint account holder. Inform them that the IRS may seize funds from the account to satisfy your tax debt.
- Move your funds to a separate account. If possible, move your funds to a bank account that is not jointly owned with the taxpayer.
- Contact the IRS. If you have received a notice of intent to levy, contact the IRS immediately to discuss your options.
The IRS can levy joint bank accounts to satisfy a taxpayer’s delinquent tax debt. However, there are a few exceptions to this rule. If you are concerned about the IRS levying your joint bank account, you should take steps to protect your assets.
Can the IRS Levy a Joint Bank Account?
FAQ
Can the government take money from a joint bank account?
What bank account can the IRS not touch?
Can money be seized from a joint account?
Can you legally take all the money from a joint account?
Can the IRS levy a joint bank account?
In general, the IRS can levy a joint bank account if one account holder has delinquent tax debt and all other required procedures have been followed. This is true whether the joint account holder is your spouse, relative, or anyone else. Joint Bank Account Levies It doesn’t matter whose funds were placed into the account.
Can the IRS take a bank account?
The IRS doesn’t “take” the account or even “freeze” the account. But they can issue a levy notice to the bank, which would require the bank to turn over money in the account. Bank levies are a one-time grab, meaning the IRS can only get what’s in the account at the time. You can make future deposits and withdrawals into the account.
Can a joint account holder withdraw money from a bank account?
This is true whether the joint account holder is your spouse, relative, or anyone else. It doesn’t matter whose funds were placed into the account. Under the Internal Revenue Manual, the IRS levy can attach to a bank account for which the taxpayer has an unrestricted right to withdraw funds, regardless of who deposited those funds.
Do you pay taxes on a joint account?
All owners of a joint account pay taxes on it. If the joint account earns interest, you may be held liable for the income produced on the account in proportion to your ownership share. Also any withdrawals exceeding $14,000 per year by a joint account holder (other than your spouse) may be treated as a gift by the IRS.