{"id":2184,"date":"2021-12-18T21:00:08","date_gmt":"2021-12-18T15:30:08","guid":{"rendered":"https:\/\/www.complianceprime.com\/blog\/?p=2184"},"modified":"2024-05-10T15:27:33","modified_gmt":"2024-05-10T09:57:33","slug":"how-does-a-tax-levy-work","status":"publish","type":"post","link":"https:\/\/www.complianceprime.com\/blog\/2021\/12\/18\/how-does-a-tax-levy-work\/","title":{"rendered":"How Does a Tax Levy Work?"},"content":{"rendered":"

The tax levy is a legal process that the IRS can use to collect an outstanding debt. A taxpayer is required to start this process while the debt remains unpaid. The tax levy is also known as a statutory levy, levy, or garnishment. The IRS can lay a levy on any of the taxpayer’s bank accounts, including the taxpayer’s checking account, savings account, or money order account. If you do not agree with the IRS’s levy, you need to contact the IRS immediately to see if you can negotiate the balance owed or try to reach a payment agreement.\u00a0<\/span><\/p>\n

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The tax levy is administered by the government, and the IRS must first serve you with a Notice of Levy before they can take any action.<\/span><\/p>\n

Tax Levy Wage Garnishment<\/span><\/h2>\n

A wage garnishment is a court order where your employer is required to hold a specified percentage of your wages until the IRS pays you your tax bill. This may be done to pay off your tax debt, satisfy certain court judgments, or support your unpaid taxes.<\/span><\/p>\n

Wage garnishment sounds like a scary idea, but it doesn’t have to be. With the right advice, your wages can be garnished to help pay off your tax debt.<\/span><\/p>\n

Bank Levies<\/span><\/h2>\n

A lot of people get nervous about the idea of bank levies, but the good news is that they’re not all that common. For one thing, the IRS usually only issues a levy when you owe back taxes\u2014it never happens to people who pay on time and always did. But you can get a levy if you’ve received a notice of levy and did not file an appeal. The notice of levy tells you that your bank will not release money from your account and that you must tell them which bank account you want to use to pay the taxes owed (and the money is deducted from the account until the taxes are paid).<\/span><\/p>\n

Property Seizure<\/span><\/h2>\n

The IRS will seize property for non-payment of taxes. If you cannot pay, they will take your assets by filing a formal legal document called a levy. It is different from a garnishment, which is a court order to take money from your paycheck.<\/span><\/p>\n

Final Words<\/span><\/h2>\n

A tax levy is a legal seizure of your property to satisfy a tax debt. A tax levy is a legal seizure of your property made by the IRS. The IRS conducts a tax levy when you don\u2019t pay your taxes. The IRS can seize your property and sell it to get the money you owe. The IRS can even get a court order that requires you to turn over your property to pay your tax debt.\u00a0<\/span><\/p>\n

Attend the Compliance Prime webinar to learn more about <\/span>tax levy<\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The tax levy is a legal process that the IRS can use to collect an outstanding debt. A taxpayer is required to start this process while the debt remains unpaid.…<\/p>\n","protected":false},"author":4,"featured_media":2198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[55],"tags":[],"class_list":["post-2184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll-and-accounting"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts\/2184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/comments?post=2184"}],"version-history":[{"count":1,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts\/2184\/revisions"}],"predecessor-version":[{"id":5341,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/posts\/2184\/revisions\/5341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/media\/2198"}],"wp:attachment":[{"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/media?parent=2184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/categories?post=2184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.complianceprime.com\/blog\/wp-json\/wp\/v2\/tags?post=2184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}