Over recent years, the IRS has become far more stringent when it comes to debts that are owed to them by taxpayers and in the event that the debts are not paid they IRS can take action. In addition to imposing fees and penalties for late or non-payment of taxes, the IRS may also consider a tax levy where they attempt to recover the money that you owe them via other means.
This is a procedure that could result in a number of actions. The tax office could seize assets that you own in order to recover the amount that you owe them or they may simply advise your bank or employer that money needs to be paid to the tax office rather than to you, which is something that banks and employers would have to comply with due to the power that the IRS has when it comes to recovering debts.
If you owe the tax office money and you come to some form of arrangement with regards to repayments, there is generally no need for the IRS to take things this far. However, if you fail to take action and simply ignore what’s happening with regards to your tax debt you could find that the IRS decides to opt for a tax levy where you could have goods seized or monies paid directly to the IRS instead of to you. If you then reach a solution or agreement, or if you repay the tax that you owe, the tax levy may be released.