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Tax Levies

A levy is a legal seizure of your property to satisfy a tax debt. 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 your debt), the IRS or State agency may seize and sell any type of real or personal property that you own or have an interest in.

For instance:

  • The IRS could seize and sell property that you hold (such as your car, boat, or house)

OR

  • The IRS could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).

The IRS usually levies only after these three requirements are met:

  • The IRS assessed the tax and sent you a Notice and Demand for Payment
  • You neglected or refused to pay the tax
  • The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.

The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.

NOTE

If the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

If the IRS levies your wages, salary, or federal payments, the levy will end when:

  • The levy is released
  • You pay your tax debt
  • The time expires for legally collecting the tax

If the IRS levies your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This holding period allows time to resolve any issues about account ownership.

After 21 days, the bank must send the money plus interest, if it applies, to the IRS.

If you are facing a Bank Levy, you should contact us immediately. This is a very serious matter that requires the professional expertise of Levy and Associates

We will research the details of your particular situation and advise you on the best actions and likely results. We will represent you and negotiate with the IRS to free your resources as quickly as possible.

Contact us today to schedule an appointment with a specialist from Levy and Associates.

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I faced a high six-figure back tax obligation to the IRS, caused by undisciplined financial management, late filing, under withholding and underpayment of taxes over several years. This situation was ... Read More

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My company has worked with the team at Levy and Associates for the past 2 years on extremely difficult tax matters involving the IRS as well as several state jurisdictions. As a business owner, g... Read More

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I’ve been going back and forth with a local IRS agent for some time with little results. They were about to garnish my pay again for the second time when I decided to call Mr. Levy for advise but in... Read More

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After being in a hospital over three months in 2012 with a death-threatening disease, I had yet to deal with the IRS (having lost my job and on disability). I had to deplete savings, my 401K and ever... Read More

Katherine
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