While some of your assets are protected, the IRS can still get to a lot of them including, but not limited to, your retirement accounts. With a tax levy, the IRS has the power to seize control of your bank account. This includes funds available for withdrawal up to the amount of the seizure.
You will be given a 21-day notice to resolve the dispute and if it is not resolved, the bank will send the IRS your money along with any other interest earned on that amount. Property such as your house and car can also be seized. If they seize your car or other property, they will apply the proceeds to your tax debt.
Wages, salary, or commission held by someone else is also fair game for the IRS to seize in a tax levy. In cases such as this a levy will only be served once, not every time you are paid. The levy will remain until the debt has been paid in full, other arrangements have been made, or the collection period ends. Your federal payments may also be seized under the Federal Payment Levy Program. In this program, up to 15 percent of your federal payments can be seized.