IRS Levy

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Tax Problems

An IRS levy is a powerful collection tool that allows the government to seize your property to satisfy tax debt. Unlike a lien which is a claim against property, a levy actually takes the property. Bank accounts frozen, wages garnished—levies cause immediate financial hardship and require urgent action.

What is an IRS Levy?

A levy is the legal seizure of property to satisfy a tax debt. The IRS can levy bank accounts, wages, retirement accounts, Social Security benefits, and other income or assets. Levies are among the most aggressive collection tools the IRS has.

Bank Levies

When the IRS levies your bank account, the bank freezes funds up to the amount you owe. You have 21 days from the levy notice date before the bank sends the funds to the IRS. During this period, you may be able to get the levy released if you can demonstrate hardship or resolve your tax debt.

Wage Garnishment

An IRS wage levy directs your employer to withhold a portion of your wages and send them to the IRS. Unlike bank levies which are one-time seizures, wage levies are continuous until the tax debt is paid, you enter a payment arrangement, or the levy is released for another reason.

Collection Due Process Hearings

Collection due process (CDP) hearings represent one of the most powerful taxpayer protections in the tax code. When the IRS sends a Notice of Federal Tax Lien Filing or a formal Notice of Intent to Levy, you have 30 days to request a CDP hearing by filing Form 12153. Once requested, the IRS stops collection activities while your case is assigned to a settlement officer from Appeals.

During a CDP hearing, you can challenge whether the proposed collection action is appropriate, explore alternatives like installment agreements or offers in compromise, and raise spousal defenses. If you disagree with the settlement officer’s determination, you can petition Tax Court within 30 days.

If the IRS has levied your bank account, wages, or other property, contact Boss Tax Law immediately to discuss your options.