IRS Tax Levy Complete Guide

A Tax Levy is basically a legal seizure of property to satisfy a Tax Debt. While a Tax Lien is used as security for a Tax Debt, a Tax Levy actually takes the property to satisfy the amount owed.

Types of IRS Tax Levies

• Bank Levy: The IRS can seize all of the funds from your Bank Account to satisfy your IRS Tax Debt. Your bank will hold the funds for 21 days, this gives you a small window of time to contact the IRS to resolve the Tax Debt issues. After 21 days the money will be sent to the IRS.
• Wage Levy: The IRS can Levy your Wages, Federal Payments, Accounts Receivables, Commissions, or State Refunds. This means the IRS can legally seize a percentage of your paycheck until the Tax Debt is paid in full.
• Asset Seizure: The IRS can seize and sell any property that you own. This includes houses, cars, boats, or anything else of value.

Tax Levy Warnings

The IRS can issue a Tax Levy after the following requirements are met:

• The amount of the Tax Debt was assessed and "Notice and Demand for Payment" was sent
  
• "Final Notice of Intent to Levy and Notice of Your Right to a Hearing" was sent at least 30 days before the levy.

You must act within the 30 day deadline after receiving the Final Notice if you do not want the IRS to issue a Tax Levy against you

How to Remove a Tax Levy

Basically, the Tax Levy will end only when:

• You pay your Tax Debt in full
• You work on a payment solution with the IRS, or
• The ten year Statute of Limitations expires

If the IRS has issued a Tax Levy, it is vital to seek a resolution for your Tax Debt issue. You must contact the IRS and discuss ways to get into compliance with the IRS. If you don’t feel confident contacting the IRS on your own, consider working with a qualified professional for assistance.

IRS Tax Levy
Everything you need to know about different types of tax levies. Guides and help on removing a tax levy.