Can the government take your money from a credit union?
The Internal Revenue Service (IRS) holds broad legal authority to issue a bank levy that can result in the complete seizure of funds from your checking or savings account to satisfy delinquent tax debts. However, the agency cannot simply empty an account without following a formalized, multi-step collection process designed to provide due process to the taxpayer. Before taking such drastic action, the IRS must assess the tax liability, send multiple formal written notices demanding payment, and issue a Final Notice of Intent to Levy along with your right to a collection due process hearing. If the taxpayer ignores these warnings and fails to establish an alternative resolution—such as an installment agreement or an offer in compromise—the IRS can legally direct the bank to freeze and surrender available account balances up to the total tax debt owed.
Related FAQs
Credit unions in the United States operate as member-owned financial cooperatives, with the largest entities managing hundreds of billions of dollars in assets and serving millions of members nationwide.
Connex Credit Union operates as a member-owned financial cooperative rather than a traditional commercial bank, providing an array of consumer banking services designed to benefit its members directly.
Connex Credit Union continues to expand its community-focused financial services, member loan programs, and digital banking infrastructure throughout its operating regions.
Connex Credit Union establishes specific daily transaction and spending limits on its debit, ATM, and credit cards to safeguard members against fraudulent activities while accommodating everyday financial needs.