If you're a taxpayer who's in deep water with the IRS, the taxing authorities may go one step further than a lien and put a levy on your property or your bank account. A levy allows the IRS to legally seize your property or take money directly from a savings, checking, or retirement account in order to pay off your tax debt. They can also levy wages if the offender is an individual or confiscate equipment if it is a business. If you've received a notice from the IRS threatening a levy, you need to act now to have it removed before they confiscate your cash or belongings.
Types of Federal Tax Levies
Bank Levy - Most Common
The IRS can issue a Notice of Intent to Levy then contact your bank and freeze your bank account. After 21 days they will deduct enough money from your account to cover the tax debt. If they don't receive the full amount the first time, they can come back multiple times as more money is deposited into your account.
Wage Levy or Wage Garnishment
The IRS can contact your employer to have a portion of your weekly paycheck deducted and put towards your tax debt. If your employer doesn't comply, the IRS will hold them liable for the amount that should have been removed from your check. So, if a wage garnishment is demanded, your employer has no choice but to cooperate.
The IRS is ruthless when it comes to property levies. Almost any kind of physical asset can be taken from a taxpayer and sold to satisfy their tax debt. This includes your car, boat, or even your home.
Retirement Account or Social Security Levy
Think your retirement savings are safe? Think again. Pensions, profit sharing, stock bonus plans, and IRAs can all be levied by the IRS.
Call Fraser, Waldrop & Company CPAs Inc. right now at 303-759-3124 and explain your situation to our Denver, CO tax professionals or request a consultation through our website. We'll help you figure out what to do next and will work tirelessly to get the levy removed and stop the threat of additional seizures.