If you need to catch up on your taxes, the IRS has the power to impose a levy on your assets. This means they can legally take control of your property and funds in your bank accounts, directly deduct money from your paycheck or retirement account, or even seize your property to cover what you owe in taxes. You can receive assistance from a skilled tax attorney in removing these levies and wage garnishments. If the IRS has notified you about a potential levy or if they've already started taking measures against you, it's crucial to take immediate action to resolve the issue.
There are several types of federal tax levies:
Bank Levy
This is the most frequent type. The IRS can freeze your bank account after sending a Notice of Intent to Levy. They wait 21 days before taking the funds needed to settle your tax debt. This process can repeat if the initial deduction only partially covers your debt.
Wage Garnishment
The IRS may also target your income by deducting a portion of your weekly paycheck to go toward your tax debt. Employers are legally required to make these deductions or face penalties for the amount withheld.
Property Levy
The IRS doesn't hesitate to levy physical assets, which means they can seize items like your car, boat, or home and sell them to pay off your tax debt.
Retirement Account or Social Security Levy:
Even your retirement funds are not safe from IRS levies. The IRS can access accounts such as pensions, profit-sharing plans, stock bonus plans, and IRAs to settle tax debts.
Taking prompt action by consulting with a tax attorney can help start the process of releasing these levies and wage garnishments.
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