Individual Tax: Levy

Levy: Contents

What is a Levy?

A levy is the legal seizure of your property to satisfy an outstanding debt.  Tax authorities can levy bank accounts, rental income, retirement accounts, cars, and even your home.  A levy is different from a lien in that a levy actually takes your property to satisfy a tax debt, while a lien is a claim used as security for the tax debt.  Private creditors need a court order to levy property, but federal agencies, like the IRS do not.

IRS Levy

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property. 

A bank levy, for example, is the legal seizure of your bank account(s) in order to pay a tax debt.  With a bank levy, the IRS simply takes your money directly out of your bank account and applies that money to your tax debt.  Your bank may also freeze your bank account during this process, meaning that you cannot withdraw your money or pay your bills.  Our team of tax professionals knows how to negotiate with tax authorities to obtain a full or partial release of any bank levy that may have been initiated.

State Levy

A state levy is a legal seizure of your property to satisfy a state tax debt.  It can require third parties, like your bank, to freeze your accounts and send your money to the state tax authorities to satisfy a state tax debt.  Some state tax authorities are required to file a tax warrant before serving a levy.

Some states are even more aggressive than the IRS in their collection efforts.  In connection with a state tax levy, state governments can also restrict your driver’s license and your registration, take away your professional licenses, and place liens on your property. 

Our team of tax professionals has experience dealing with both the state and federal tax authorities to obtain a full or partial release of any levy or other proceeding that may have been initiated.

Notice of Intent To Levy

If you receive an IRS bill titled “Final Notice of Intent to Levy and Notice of Your Right to A Hearing”, it is imperative that you get assistance from qualified accounting and tax professionals.  Our team of tax professionals knows how to negotiate with tax authorities to obtain a full or partial release of any bank levy that may have been initiated.

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