What is a bank levy?

A bank levy is a legal collection action that allows the Louisiana Department of Revenue (LDR) to collect unpaid taxes, penalties, interest, and other applicable charges directly from your bank, credit union, or brokerage account.

When a levy is issued, your financial institution is required by law to remit available funds from your account to LDR and apply those funds toward your outstanding tax liability.

LDR issues bank levies only after providing the notices and opportunities to resolve the balance required by Louisiana law.

Need Immediate Assistance?

If your account has been levied, contact LDR as soon as possible.

Business Taxes

Phone: 1-855-307-3893
Email: [email protected]

Individual Income Tax

Email: [email protected]

Why Was My Bank Account Levied?

A bank levy may occur if you:

• Have an unpaid Louisiana tax liability.
• Did not respond to notices requesting payment or other action.
• Did not resolve your balance before collection action became necessary.

What Should I Do?

If your account has been levied:

1. Log in to LaTAP to review your account balances, tax periods, payment history, notices, and correspondence.
2. Review the outstanding balance and determine which tax periods are affected.
3. If possible, pay the remaining balance through LaTAP.
4. If you believe the levy was issued in error or you are unable to pay the balance in full, contact LDR immediately to discuss your account and available resolution options.
5. Be prepared to provide any documentation requested by LDR.

Recommendation: Reviewing your account in LaTAP before contacting LDR can help you understand your tax liability and expedite the resolution process.

Can the Levy Be Released?

In certain situations, LDR may release a bank levy after reviewing your account and determining that all legal requirements have been satisfied.

A levy may be released when:

• The outstanding liability has been paid.
• The levy was issued in error.
• Another approved resolution has been completed, when permitted by law.

A levy is not automatically released simply because you contact LDR. Your account must first be reviewed and any required actions completed.

How to Avoid Future Bank Levies

To help prevent future bank levies and other collection actions:

• File all required tax returns by the applicable due dates, even if you cannot pay the full amount owed.
• Pay your tax liabilities in full whenever possible or contact LDR promptly to discuss available resolution options.
• Respond to all notices and correspondence from LDR as soon as possible.
• Keep your mailing address and contact information current.
• Review your tax account regularly through LaTAP to monitor balances, payments, and notices.
• Contact LDR before collection action becomes necessary if you are experiencing financial hardship or need assistance resolving your account.

Taking action early may help you avoid additional penalties, interest, and enforced collection actions.