Massachusetts Notice of Bank Levy Checklist
A Notice of Levy from the Massachusetts Department of Revenue means the state has ordered your bank to freeze or transfer money from your account to pay a tax debt. This notice represents a formal enforcement action where the state has moved beyond payment requests and now takes direct action with your financial institution.
What This Notice Means
A bank levy is a legal order from the Massachusetts Department of Revenue that directs your bank to hold or turn over money in your account to satisfy tax debt you owe to the state. When you receive this notice, the state has already issued the levy order to your bank.
The Department of Revenue sent you this notice, not the bank. This enforcement tool typically appears after earlier collection efforts, like payment notices and demands, have not resulted in payment.
Why the State Sent This Notice
The Department of Revenue sends a Notice of Levy when a taxpayer owes state taxes and has not paid despite receiving previous notices and collection letters. Massachusetts law requires that you neglect or refuse to pay within ten days after demand before the state can issue a levy.
What Happens If You Ignore This Notice
If you do not respond to this notice, your bank account will likely remain frozen, or the funds will be transferred to the state after the required holding period. The levy remains in effect for 60 days from the date it is first served until the liability is paid in full or released, whichever occurs first.
What This Notice Does Not Mean
Receiving this notice does not mean criminal charges are being filed against you or that you face jail time for tax debt. The levy applies to the specific funds that were in the account at the time of the levy and deposits made during the 60-day effective period.
Checklist: What to Do After Receiving This Notice
Step 1: Read the entire notice carefully
Set aside time to review the notice from beginning to end without rushing. Write down the amount owed, the tax year or period the debt relates to, and any deadline dates mentioned. Confirm the account that was levied is actually yours, and record the Department of Revenue contact information listed on the notice.
Step 2: Gather your tax documents
Collect the state tax returns you filed for the years mentioned in the notice. Look for payment confirmations, bank statements, or correspondence you have with the Massachusetts DOR about this debt.
Step 3: Check your bank account and confirm the levy
Log in to your bank account or call your bank directly to see the current status. Ask what has been frozen or transferred, when the action took place, and about any fees associated with the levy.
Step 4: Review the debt amount and verify it is correct
Compare the amount listed on the levy notice to previous notices or bills you received from the state. Contact the DOR using the number on the notice to clarify any discrepancies if the amount seems wrong.
Step 5: Determine if you can pay the debt in full immediately
Paying the full amount owed will stop the collection process and release frozen funds if you have access to funds through another account, family help, or a loan. Request written confirmation that the debt has been satisfied and ask that the levy be released.
Step 6: If you cannot pay in full, contact the Department of Revenue
Call or write to the DOR contact listed on the notice and explain your financial situation honestly. Ask if the state offers payment plans, partial payment options, or other arrangements for people who cannot pay immediately. Some taxpayers qualify for hardship relief or temporary payment delays, but the state must be informed of your situation. Be prepared to provide information about your current income, expenses, and assets.
Step 7: Ask about the release of the levy
If you enter into a payment arrangement, ask the DOR in writing when the levy will be released. Get this information in writing so you have documentation of what was promised.
Step 8: Understand that certain funds may be exempt
Massachusetts law exempts specific types of income from levy, including unemployment compensation, certain federal pension or retirement benefits, workers' compensation, amounts necessary to comply with preexisting child support orders, Supplemental Security Income, and railroad unemployment insurance benefits. Financial institutions are not required to determine exemptions before surrendering commingled funds, so you must request return of wrongfully levied exempt funds after the fact.
Step 9: Keep copies of everything
Make copies of the original notice, any written responses you send, confirmation of payments you make, and letters or documents you receive back from the Massachusetts DOR. Store these copies in a safe place for future reference.
Step 10: Follow up in writing if you take any action
If you make a phone call to the DOR, follow up with a written letter or email summarizing what you discussed and what you agreed to. Written documentation is important in case there is confusion later about what was agreed to.
Common Mistakes to Avoid
● Ignoring the notice or assuming it will resolve on its own creates more difficulties because the levy remains active for 60 days and can result in a fund transfer to the state.
● Failing to respond within the 60-day period when the levy remains active limits your options for resolving the situation effectively.
● Sending payment or correspondence to the wrong address delays resolution, so always use the contact information provided on the official notice.
Frequently Asked Questions
How long does a bank levy last?
The levy remains in effect for 60 days from the date it is first served until the liability is paid in full or released, whichever occurs first.
Can the state levy my entire bank account?
The levy order typically applies to all available funds in the account at the time the levy is issued and deposits made during the 60-day period. Certain funds may be protected under state or federal law, but you must request the return of wrongfully levied exempt funds.
What if I received this notice by mistake?
Contact the DOR immediately using the number on the notice. Explain that you believe you are not the person who owes this debt and provide any information that shows the levy was issued in error.
Receiving this notice is stressful, but it does not end your options. Understanding that the levy remains active for 60 days and that collection alternatives may be available is the first step toward resolving the situation.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
