What is an IRS Tax Levy?
An IRS tax levy allows the IRS to seize and sell your property.
This property includes:
- money in the bank or other financial accounts
- real estate
- other personal assets
This action is taken by the IRS to collect taxes owed.
When Will the IRS Levy?
An IRS tax levy is usually the result of not communicating with the IRS. Do not ignore letters from the IRS Letters. These letters always escalate. When you receive a letter from the IRS you should immediately seek the assistance of a tax professional to help you sort things out. It is always in your best interest to avoid a levy.
There are Two Types of Levies
- Material property and personal property owned by the taxpayer
- Property owned by the taxpayer but held by a third party such as your bank or employer (wages).
IRS Bank Levies
The IRS issues a bank levy to seize the money in your bank accounts. When the IRS does this, it is only for the particular day the levy is received by the bank. The bank MUST pull out the money that is in your accounts on that day up to the amount of the levy. The bank usually has 21 days to send the money to the IRS. The levy does NOT affect future deposits made into your bank account unless the IRS issues another bank levy. For more information about bank levies visit the IRS.
Can The IRS Levy Joint Bank Accounts
The IRS can levy any bank account that the taxpayer with back taxes is able to withdraw funds from without any limits. So if your name is on the account, even if there are other people listed on the account, the IRS can levy the account.
Wage levies or garnishments are filed with your employer. The garnishment will remain in effect until the IRS informs your employer that the garnishment has been released. Most wage garnishments create an extreme financial hardship.
When Can the IRS Levy?
To levy a taxpayer’s property the IRS must file a notice and demand payment. The taxpayer is then given 10 days to pay the tax. If the taxpayer refuses to pay the tax or neglects the notice, the IRS must provide at least 30 days notice of it’s intent to levy on the taxpayer’s property.
It is Not Too Late
We can help you with an intent to levy, levy release or even stop a wage garnishment. Work directly with Enrolled Agents with more than 29 years in business and the experience that counts. Tax Professionals w an A+ rated service that has never had a single complaint ever. A consultation is free and could save you thousands contact us.