What is a Tax Levy?

tax levyA Tax Levy is simply the legal seizure of real or personal property. Real property is immovable (anything attached to land - i.e. house, land, building etc) where personal property is movable (car, boat, etc). A tax levy is more severe when compared to a lien.

This can come in many forms. The IRS or State can seize retirement accounts, wages, commissions, salaries, dividends, bank accounts, cars, boats, and even your house. A Bank Levy also called Bank Account Garnishment, is one form of a tax levy where the IRS or State seizes your bank account to collect back taxes. A Wage Levy is also called Wage Garnishment is which the Internal Revenue Service deducts unpaid taxes form your paycheck.

What Should I Do About Tax Wage Levy?

  • 1) If your property has been taken via a levy contact the person who took the action.
    2) The next step is to request a hearing with the Office of Appeal
    3) Work with Tax Debt Specialists, who can tell you your options at no cost to you.
    4) Sign up for a Free Interview Above

    What Happens Next?

    Many states have different laws around tax levies. With the IRS, they follow a strict protocol. Here is usually how it works:

    1) The IRS sends you a by mail a Notice and Demand for Payment:

    2) You do not respond or refuse to pay the taxes

    3) The IRS will then send you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before they levy. They can give you this letter in person, or send it to your address or place of business. If they levy your state tax refund, then you will Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

    Typically, you can call and ask for the IRS to provide you a manager to review your case, or you can ask for a Collection Due Process hearing with the Office of Appeals by writing the IRS office at the bottom of your notice. You need to file your request within 30 days of the day in your notice. Some of the issues you may discuss with them:

      • You aid all taxes due before the IRS levy notice was sent
      • While in bankruptcy, the IRS sent you a intent to levy "subject to the automatic stay during bankruptcy"
      • There was a miscalculation or ill an assessment regarding your taxes
      • The legal time to collect the tax expired (called the statute of limitations) before the tax levy was sent
      • You wish to discuss the collection options, and you never had an opportunity to contest the total taxes due
      • You are planning to use spousal defense or proceed needing Innocent spouse relief

    The Office of Appeals will reach a final decision or determination. Publication 1660 has more information on your Collection Appeal Rights.

    You can contest within 30 days of the decision or determination.

What Do I Do, I Need Help?

What do I do? I need help...

First be proactive in tackling the situation. If you currently have a levy against you get help with link at top. DO NOT sit back and wait for the problem to go away by itself. Your information is secure. There is no committment, if you decide to continue and you can be helped than charges may apply for assistance.

If Wages, Salary, Federal Payments (entitlements), the levy ends when the tax levy is released , you pay your taxes, or the statue of limitations proceeds (the time the IRS can collect).

For More Information on Back Account Garnishment or A Bank Account Levy

For More Information on Wage Garnishment or a Wage Levy click here.