Tax Levy

A tax levy is the actual seizure of property by the IRS to satisfy a tax debt. Unlike a tax lien, which is a claim against property, a levy actually takes the property to pay the tax debt.

Types of Levies

Wage Garnishment

The IRS can garnish wages, leaving only a small amount for basic living expenses

Bank Account Levy

The IRS can freeze and seize funds from bank accounts

Property Seizure

Real estate, vehicles, and other valuable property can be seized and sold

Asset Seizure

Business assets, inventory, and accounts receivable can be levied

Before a Levy

The IRS must provide proper notice before issuing a levy:

• Notice and Demand for Payment
• Final Notice of Intent to Levy (30 days before levy)
• Notice of Your Right to a Hearing

Stopping a Levy

Professional tax relief services can help stop levies through:

• Full payment of the debt
• Installment agreement
• Offer in compromise
• Currently not collectible status
• Appeal or collection due process hearing

Levy Release

A levy can be released if:

• The debt is paid in full
• The collection period expires
• Release would facilitate collection
• An installment agreement is established
• The levy creates economic hardship

Protection from Levy

Certain property is protected from levy:

• Basic clothing and personal effects
• Tools of trade up to certain limits
• Unemployment benefits
• Certain pension payments
• Workers' compensation

Getting Help

If you're facing a levy, immediate action is crucial. Verify tax relief options and consider professional assistance to protect your assets and resolve your tax debt.