A Levy is a legal seizure of your property to satisfy a tax debt. A Levy is an Enforced Collection Action. Levies are different from liens. A lien is a claim used as security for the tax debt, while a Levy actually takes the property to satisfy the tax debt.
If you do not pay your taxes or make arrangements to settle the debt, the IRS may serve a levy on you. Levies allow the IRS to:
- Seize and sell your property. This includes personal property like your car and real property like your home or other real estate you own.
- Seize and sell property that is yours but is held by someone else including; bank accounts, retirement accounts, dividends, rental income and the cash value of life insurance policies. When the IRS places a levy on your bank account(s), the levy attaches to deposits that have cleared and funds that are available for withdrawal when the levy is received up to the amount of the levy.
- Levy On Your Wages (Garnishment)- A Levy can be used to garnish income from wages, salary, commissions or other payments for personal services. The levy is served to your employer who by law must withhold amounts from your paycheck (determined by a mathematical calculation) until the levy is satisfied. A levy on your wages does not need to be served each time you are paid. Once the levy is served and in place, the levy continues until the tax debt is paid in full.
- Social Security and Pension Income– The IRS can also levy retirement and pension income and even Social Security.
If you have received a Notice of Intent to Levy this is a very serious matter and requires immediate attention. You should have competent and professional representation.
Here’s a quick podcast with Attorney Craig Zimmerman:
There are many options available in dealing with levies. We can usually prevent levies and if you already have one, we can assist you with either a full or partial release. Our Tax Relief Division is highly skilled and experienced in dealing with levies. All of the Enrolled Agents in our Tax Relief have previous IRS experience. This experience matters most in dealing with the IRS and stopping them from seizing your assets and negotiating a mutually agreeable resolution.