Tax Levy

The Internal Revenue Service has the power to levy (garnish/seize) bank accounts, wages, payments from 3rd parties owed to the taxpayer, 401K accounts, stock brokerage accounts. The IRS has more power than most, if not all creditors, as there are very few exemptions or protected assets from which they can seize; basically anything is free game to the IRS to levy/seize. For example the IRS can levy the majority of your wages when most other creditors can only levy a portion, i.e. in many states only 25%, also generally social security is exempt from levy, however the IRS can levy social security benefits.

Therefore, it is very important to make sure that levies don't occur and if they have already occurred to get them released. The IRS will generally not levy if you are: currently in an installment agreement, been declared as being in currently not collectible status, have filed for a Collection Due Process Hearing within 30 days of receiving a "Final Notice of Intent to Levy and Your Right to a Hearing, in a bankruptcy, in an Offer in Compromise or have filed for appeals or other non-collection alternatives. At Carr Law if you are wanting to avoid a tax levy or even under a current tax levy, we can consult with you and come up with the best plan of action to avoid any future levies and/or stop current levies.

 


Tax Levy