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How Does an IRS Levy Work? How Do I Stop It?

Quickly stop IRS levies and resolve your IRS liabilities owed with help from McCauley Law Offices, P.C. Give us a call today.

Can the IRS take money from your bank account without giving you notice?

The short answer is no.  They cannot take money from your bank account and garnish your wages without giving you proper notice.  You will receive an IRS levy notice and then 30 days after receiving such a notice, the IRS will take steps to seize money from your bank account in order to satisfy a tax debt.  Keep in mind however, the IRS may have sent you this notice some time ago and levied, so it is important to open all of your mail from the IRS.

What is an IRS levy?

A levy is a legal seizure of your property to satisfy a tax debt.  The Internal Revenue code (IRC) authorizes the Internal Revenue Service to use levies to collect delinquent tax debts under IRC 6331.  Any property or right to property that belongs to the taxpayer or on which there is a Federal Tax Lien can be levied unless the IRC exempts the property from levy.

Levies are not the same as liens. A lien is a legal claim against property to secure payment of the delinquent taxes while a levy takes the property from the property owner that owes delinquent taxes, to satisfy the tax debt.

When will the IRS issue a levy against me?

If you do not make arrangements to settle your debt and communicate with the IRS, then the IRS will begin taking steps toward a levy as the next action.  The IRS will levy any property or right to property that you own or have an interest in.  The IRS could levy your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, any cash value of your life insurance, monies owed to you by third parties, or commissions.  They can also seize and sell your property that you hold such as your car, boat, or house.

What are the steps the IRS will take before they issue a levy?

Generally, the IRS will usually levy your property and assets only after all of these actions have been taken:

  • The IRS sent you a Notice and Demand for Payment (a tax bill) assessing the tax amount owed.
  • You neglected or refused to pay the tax bill.
  • The IRS will send you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing.  This is the levy notice.  This will be sent 30 days before a levy action is taken.  The IRS may give you this notice in person, leave it at your home or usual place of business, or send it to your last known address by certified or registered mail with return receipt requested.  The IRS can pursue the levy action even if you do not claim the certified mail.  The only times that they do not send notice prior is if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of your Right to Hearing after the levy.

All of these three requirements have to be satisfied before they will begin a tax levy against you.

How do you a stop an IRS tax levy?

As Certified Tax Resolution Specialists, and Tax Attorneys we can help you solve your IRS tax problems quickly.  When we handle your case, we will work diligently to resolve your tax liability.  The IRS can suspend and release your levy if they determine that it is causing you an immediate economic hardship.  You have a right to request a release of the levy, and if your request is denied, you have a right to an appeal.  Wages that are levied from your accounts can be released back to you after a request has been made.  McCauley Tax Law Firm is here to help you in this time.  Do not let the IRS place a bank levy on your accounts, contact us to put an end to their threats.

At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

McCauley Law Offices can help!

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