Wisconsin Notice of Bank Levy Checklist

collect delinquent taxes through levy upon any property belonging to the taxpayer.

The Department can proceed with levy action after a tax remains unpaid for at least 10 days following the date it becomes delinquent. This statutory requirement establishes the minimum waiting period before the state exercises its levy authority against bank accounts or other property.

Why the Department Issues Bank Levies

The Wisconsin Department of Revenue issues bank levies after other collection efforts have not resolved your unpaid tax debt. A tax becomes delinquent when the due date of an assessment passes and after the expiration of any statutory appeal rights.

Once your tax debt reaches delinquent status, the Department may pursue collection actions, including wage attachments, tax warrants, and bank levies. Voluntary payment options typically precede levy actions, though Wisconsin law does not require specific notice of intent to levy before the Department instructs your bank to freeze funds.

Two Types of Bank Levies in Wisconsin

Wisconsin statutes recognize two distinct types of levies that affect how long your bank account remains frozen and how funds are transferred. Understanding these levy types helps you anticipate what happens after your financial institution receives the order.

One-Time Levy (Noncontinuous Levy)

A one-time levy affects only the funds in your account at the exact moment your bank receives the levy order from the Department. Your bank freezes the available balance on the date and time of service. Direct deposits or other funds added to your account after the bank receives the

levy remain accessible to you. The Department must issue another separate levy to attach funds deposited after the initial freeze date.

Continuous Levy

A continuous levy remains in effect from the date your bank receives it until either the full tax liability is satisfied or the Department releases the levy. Your bank continues to hold and transfer funds deposited into your account after the initial levy date until the debt is paid in full.

Protected Funds and Exemptions

Certain federally protected funds receive exemption from Wisconsin DOR bank levies. Social

Security and Supplemental Security Income issued by the Social Security Administration cannot be seized through state tax levies.

Veterans’ benefits administered by the United States Department of Veterans Affairs remain protected from levy action. Federal railroad retirement, unemployment, and sickness benefits administered by the Railroad Retirement Board are exempt, as are Civil Service Retirement

System and Federal Employee Retirement System benefits administered by the Office of

Personnel Management.

What Happens After Your Bank Receives the Levy

Your financial institution must comply with the levy order upon demand from the Department of

Revenue under Wisconsin Statute 71.91(6)(c)1. Banks typically hold frozen funds for a period before transferring them to the Department, though Wisconsin law does not specify a mandatory holding period like the federal 21-day rule.

Steps to Take After Receiving Notice

Follow these steps in order after you learn about a Wisconsin tax levy bank account freeze

1. Contact the Wisconsin Department of Revenue Compliance Bureau immediately at the phone number provided on any correspondence or call (608) 266-7879.

2. Request verification of the exact amount owed, including the tax year, type of tax, and any penalties or interest added to the principal balance.

3. Ask whether you qualify for a payment plan through My Tax Account or by submitting a completed payment plan request form.

4. Inquire about the levy release process and how quickly the Department will instruct your bank to unfreeze your account if you pay the debt or reach an agreement.

5. Provide complete banking information if you arrange payment so the Department can process your agreement promptly.

6. Notify your bank once the Department confirms it has released the levy to ensure the freeze is lifted from your account.

7. Keep copies of all correspondence, payment confirmations, and notes from phone conversations with both the Department and your financial institution.

Payment Plan Options

You can request a payment plan by registering for My Tax Account and adding access to your delinquent accounts. A twenty-dollar fee applies when you enter into a payment plan agreement with the Department.

Filing and paying all tax returns on time becomes mandatory once you establish a payment plan, and you must make expected payments according to the schedule to avoid additional collection actions. Even while you maintain an active payment plan, the Department continues to intercept refunds or payments due to you from the federal government, Wisconsin, and other states. It may issue a tax warrant to secure the debt during the payment plan period.

Common Questions About Wisconsin Tax Levy Bank

Accounts

The Department can levy joint accounts if the debtor has access to the funds at the bank. All accessible funds in a joint account are generally available to the Department regardless of who deposited the money.

Your financial institution can offset certain secured obligations before sending levied funds to the

Department. Banks can offset overdraft protection if the account is identified as security for that protection, and financial institutions can offset secured loans if the account is documented as security or if a loan default exists. Appropriate action was taken to satisfy the delinquent loan.

Adjustments to levy amounts may occur if you file acceptable returns before the bank transfers the funds, and your actual liability is less than the estimated amount. Contact the Department at the email or phone number listed on your copy of the levy notice to request an adjustment based on filed returns.

Additional Collection Fees and Costs

The Department assesses a delinquent tax collection fee of 6.5 percent of the amount due or thirty-five dollars, whichever is greater. Interest accrues monthly at the rate of 18 percent per year on the tax balance due, and the Department adds expenses incurred with legal collection actions, including lien filing fees, garnishment fees, supplemental hearing fees, and other court costs to your total debt amount.

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.

• State tax notice review and response
• Penalty and interest reduction options
• Payroll and trust fund tax assistance
• Payment plan and relief eligibility review
• Representation with state tax agencies

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