Merchant Service Provider Levy

A levy placed against your bank account is part of the Louisiana Department of Revenue’s (LDR) efforts to collect unpaid taxes, penalties, or interest.

Why Was a Levy Place Against My Bank Account? 

When a taxpayer fails to pay any tax, penalty, or interest assessed by the Louisiana Department of Revenue (LDR), Revised Statute 47:1569 grants the secretary of the LDR the authority to enforce tax collection through distraint and sale. This means that the LDR can levy and seize your property or rights to property—including bank accounts, goods, stocks, securities, real estate, and more—until the owed amount is paid.

Under Revised Statute 47:1570, the LDR has the right to seize:

• Bank accounts

• Wages

• Securities

• Real estate

• Personal property

  What Happens If a Tax Lien Is Recorded?

• To resolve a levy and the associated lien on your property, including your bank account, the following steps must be taken:

  1. Pay the Amount Due: You must pay the tax, penalties, interest, and any applicable lien recordation and cancellation fees.
  2. Request a Lien Payoff Amount: To obtain the payoff amount for the lien, submit Form R-19023 (Request for Louisiana Tax Assessment & Lien Payoff) to the Louisiana Department of Revenue. Be sure to include copies of any outstanding liens.
     • Response Time: It typically takes 4 to 5 business days to receive a response once the request is submitted.
     • Fax Option: To expedite the process, you may fax your request to the Special Collection Unit at (225) 219-2256.
  3. Lien Release: Once your payment is made and processed, the lien will be released. If you are eligible for a partial lien release, this can also be arranged under certain conditions, but approval must be granted by the Louisiana Board of Tax Appeals.
     • Partial Lien Release: A partial lien release may apply if LDR has sufficient liens against your other property, or if you pay an amount equal to the state’s interest in the property being released.

  What If I Need More Information?

  For more detailed information about tax liens, distraint procedures, and how to resolve a levy, refer to LAC 61:I.5302 or consult with the Louisiana Department of Revenue directly.

• To Resolve Your Tax Debt

  • Submit Form R-19023
  • Fax to: (225) 219-2256 for expedited service
  • Contact LDR for further assistance