Hero image showing a calculator and pen

Additional Pages

What is a Federal Tax Levy?

A Federal Tax Levy is a legal seizure of your property to satisfy a tax debt. A levy actually takes the property to satisfy the tax debt.

IRC 6331 authorizes the the IRS to collect delinquent tax.

If you do not pay your taxes, or make arrangements to settle your debt). and the IRS determines that a levy is the next appropriate action, the IRS may levy any property or right to property you own or have an interest in.The IRS could levy property that is yours, but is held by someone else (wages, bank accounts,brokerage acocunts, rental income), or the IRS could seize and sell property that you hold (boat, car, house).

You can avoid a levy by filing returns on time and paying your taxes when due.If you need an extension, you should file one. If you can't pay what you owe, you should pay as much as you can and work with the IRS to resolve the remaining balance (monthly installment agreement or offer in comprise).

Contact the IRS immediately to resolve your tax liability and request a levy release. If the IRS denies your request, you may appeal this decision. Please note: The release of a levy does not mean you don't have to pay the balance due. You must still make arrangements with the IRS to resolve your tax debt or a levy may be reissued.

If a Levy is Causing an Economic Hardship, depending on the hardship situation, the IRS either must release the levy, or the levy may be released.

Wage and Bank Levies have different procedures that must be followed by both you and the IRS. 

IRS Publication 1660 Collection Appeal Rights expains your appeal rights.

To schedule a FREE, Confidential, No-Obligation Tax Consultation, call me today at (561) 746-1926 or (561) 339-8102.