Washington Notice of Bank Levy Checklist
A Notice and Order to Withhold and Deliver from the Washington State Department of Revenue means the agency has instructed your bank to freeze funds in your account to pay overdue state taxes. This serious enforcement action follows a specific administrative process under the Revised Code of Washington, and ignoring it typically results in the order being executed and funds being removed from your account.
What This Notice Means
The Notice and Order to Withhold and Deliver is a formal order from the Washington Department of Revenue instructing your bank to hold and transfer money from your account toward unpaid state taxes. It tells you that the state has identified your financial institution and intends to collect funds directly from your account.
Functioning as an administrative garnishment, the order becomes available to the Department of Revenue when taxes remain unpaid after other collection efforts. You should understand that this collection tool is not a court order, lawsuit, or criminal action.
Why the State Sent This Notice
The Washington State Department of Revenue issues a Notice and Order to Withhold and Deliver only after a tax warrant has been filed against you. Under Washington State law, the department must have an existing tax warrant on file before it can issue this collection order.
A tax warrant is issued when fees, taxes, increases, or penalties remain unpaid fifteen days after becoming due. If the warrant remains unpaid ten days after issuance, the department files it with the superior court clerk, establishing a lien against your real property and tangible personal property.
What Happens If You Ignore This Notice
Your financial institution receives the order and freezes the amount stated in the notice if you take no action. Banks or credit unions must answer the notice within thirty days if served under the electronic withhold and deliver process, or within twenty days if served individually.
After the answer period, the department may demand immediate delivery of the funds. The default outcome is that funds are transferred to the state to be applied against your tax liability.
What This Notice Does Not Mean
This notice does not mean your bank account has already been emptied or that you have no options available. A Notice and Order to Withhold and Deliver is not a wage garnishment, property seizure order, or federal tax lien.
Receiving this notice does not mean criminal charges have been filed or that you face tax evasion penalties. The order is solely a tax debt collection action focused on the specific account identified by the department.
Checklist: What to Do After Receiving This Notice
Follow these steps to understand your situation and respond appropriately:
1. Locate the notice and review it completely.
Find the Notice and Order to Withhold and Deliver you received. Read every section carefully, including the amount owed, the tax year or period involved, your name and account information, and any deadline listed.
2. Verify the debt amount and the account identified.
Confirm that the account named in the notice actually belongs to you. Check whether the tax amount and years shown match what you believe you owe.
3. Determine whether you agree with the underlying tax assessment.
Review your own tax records, payment history, or prior correspondence with the state to assess whether the amount listed is accurate. Appeal rights for the underlying tax assessment must be exercised within thirty days of receiving the original assessment notice, not after this collection order is issued.
4. Understand that hearing rights are limited at this stage.
Washington State law does not provide a hearing right to challenge this order once a tax warrant has been filed. The only response mechanism is the mandatory answer requirement within twenty or thirty days, depending on how the order was served.
5. Contact the Department of Revenue if you plan to respond.
Call or write to the department using the contact information on the notice. Explain your situation clearly, whether you dispute the amount, plan to pay, or want to discuss payment arrangements.
6. Understand payment plan requirements if you cannot pay in full.
Payment plans may be available, but they require qualification through a financial statement. The department typically requires completion of this statement to determine if you qualify and what monthly payment amount is acceptable.
Self-service payment plans generally do not qualify if there is an active warrant against you. You must stay current on all tax responsibilities during any payment arrangement.
7. Keep all documentation in one place.
Save copies of the notice, your response, any correspondence with the department, bank statements, tax returns, and payment records. Organized documentation is helpful if your situation requires further explanation or if you pursue payment arrangements.
8. If you pay the full amount owed, notify the state and keep proof.
Pay the tax debt as quickly as possible and retain proof of payment if you can satisfy the full amount. Request confirmation from the Department of Revenue that the withhold and deliver order has been released.
What Happens After This Is Completed
The department reviews your response or takes the next step in the debt collection process once you contact them. If no response is received by the deadline, the state proceeds with executing the order as originally issued and demands immediate delivery of funds from your financial institution.
Common Mistakes to Avoid
● Not understanding the correct terminology: This is a Notice and Order to Withhold and Deliver, not simply a bank levy or wage levy notice.
● Missing the answer deadline: Financial institutions served electronically must answer within thirty days, and individuals served under other methods must answer within twenty days.
● Assuming you have hearing rights: Washington State law does not provide a hearing to challenge the withhold and deliver order itself once a tax warrant is filed.
● Closing the account or moving funds after receiving the notice: Attempting to avoid the order by closing accounts or transferring funds may create additional problems and does not prevent collection through other means.
● Not responding at all: Ignoring the notice does not make it go away, and the order typically proceeds as planned if no action is taken.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We offer:
- State tax notice review and response
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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
