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 or other financial institution when a tax liability remains unpaid. Before a levy is issued, LDR provides all notices required by Louisiana law and an opportunity to resolve the balance.
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 through payment or another approved resolution before collection action was taken.
What Should I Do?
If your bank account has been levied:
Log in to LaTAP to review your account information, tax periods, balances due, payment history, and any notices or correspondence related to your account.
Review the outstanding balance and determine which tax periods are affected.
If you are able, pay the outstanding balance through LaTAP.
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.
Be prepared to provide any documentation requested by LDR to assist in reviewing your account.
Recommendation: LaTAP is the fastest way to view your account information, balances, payment history, and notices. Reviewing your account before contacting LDR can help you better understand your tax liability and expedite the resolution process.
Can the Levy Be Released?
In certain situations, LDR may release a levy after reviewing your account and determining that the legal requirements have been satisfied. This may occur after:
The liability has been been paid.
The levy was issued in error.
Another resolution has been approved, when permitted by law.
A levy is not automatically released simply because you contact LDR. Your account must first be reviewed and any applicable requirements satisfied.
Frequently Asked Questions
Will my bank notify me of the levy?
Your financial institution will generally notify you after receiving the levy. Once served, the financial institution must comply with Louisiana law.
Can I stop additional collection actions?
Possibly. Resolving your tax liability promptly may help prevent additional enforcement actions, such as additional bank levies or wage garnishments.
What if I think the levy was issued in error?
Contact LDR immediately. Be prepared to provide documentation supporting your claim so your account can be reviewed.
How to Avoid Future 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 so you receive important notices.
Review your tax account regularly through LaTAP to monitor balances, payments, and notices.
If you are experiencing financial hardship, contact LDR before collection action becomes necessary to discuss available resolution options.
Taking action early can help you avoid additional penalties, interest, and enforced collection actions, including bank levies and wage garnishments.
Recommendation: If your account has been levied, do not ignore the notice. Contact LDR as soon as possible to discuss your account and determine the appropriate resolution. Prompt action may help resolve your account more quickly and reduce the likelihood of additional collection actions.
