Satisfaction of Levies
A tax compliance levy has been imposed on a stock market account demanding an amount well less than the value of the account by a certain date. The stock brokerage restricts account activity and makes the demanded payment on the due date. Once the payment has been made, or at the latest, when the payment check has cleared, is the account activity restriction automatically released or does this require a formal release document from the tax bureau?
2 Answers from Attorneys
Re: Satisfaction of Levies
If it was a formal lien, rather than for backup withholding, it could take a week or so for the release to be issued, after the check has cleared. You can get a copy by FAX by calling the IRS agent who issued the original lien/levy. The phone number is on the original lien/levy document.
Re: Satisfaction of Levies
After the levy is satisfied the account shoud resume normal acrtivity.
A release of lien should be demanded and filed. Most tax authorities file the release of lien swiftly (but some don't) and its important to clear the record.
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