IRS Levy

An IRS levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

If you do not pay your taxes or make arrangements to settle your debt
the IRS could seize and sell your property (such as your car, boat, or house).  They can also levy your wages, retirement accounts, dividends, bank accounts, rental income, accounts receivables, the cash value of your life insurance, or commissions.

A levy on your wages, salary, commissions, or other payments for personal services does not need to be served each time you are paid. Once the IRS serves a levy, it continues until your tax debt is paid in full or other arrangements are made to satisfy the debt, or the time period for collecting expires.

An IRS levy can occur when they have assessed your tax and sent you a Notice and Demand for Payment and you neglected or refused to pay the tax, and they have sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.

Many times we will request a CDP hearing for our clients in this situation.  Our enrolled agent will determine the best course of action.