If you have unresolved debt with the IRS, your bank accounts, income sources, and personal property could be in jeopardy. A federal or state levy permits the legal seizure of your property to satisfy a tax debt. Even when you have already received multiple letters, a levy can be a shocking devastation to your already-strained finances. Here are the main ways the IRS (or state) may levy, garnish, or seize your assets.
The IRS can seize your money with a bank levy, collecting what they need to satisfy the delinquent tax balance up to the entire amount while the funds are frozen to you. And any bank account with your name on it is up for grabs – even if it belongs to or is shared with others. You typically have 21 days to act, including submitting for a formal resolution with the IRS. This agreement must be established before the 21-day timeframe ends; after the conclusion of a bank levy, IRS return-of-funds approvals are unlikely.
Income Source Garnishment
Yes, your paycheck could be at stake if you owe back taxes. The IRS can garnish various income sources including:
Resolving the back taxes you owe is the best way to get your benefits – and way of life – back on track.
As a last resort, the IRS can seize personal property and assets (think: houses, vehicles, boats) to sell at public or private auctions.
The rule of thumb when facing a levy? Don’t ignore it. Getting tax help from a tax debt resolution professional is your best bet to releasing a levy. Working with the IRS on your behalf, tax professionals know the necessary steps to take to resolve the issue and get your money back where it belongs – in your bank accounts.