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What Is A Levy | IRS Garnishment | Florida

Updated: Jan 28


Coast to Coast Tax Relief Programs


A levy (#IRSlevy) is a legal seizure of your paycheck, bank account, and property to satisfy a tax debt. Levies are different from a tax lien. A Federal tax lien is a legal claim against property to secure payment of the tax debt, while a levy (#IRSgarnishment) actually takes the property to satisfy the tax debt.

Where does Internal Revenue Service (IRS) authority to levy originate?

The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax. See IRC 6331. Any property or right to property that belongs to the taxpayer or on which there is a Federal tax lien can be levied, unless the IRC exempts the property from the garnishment (#IRSlevy).

What actions must the agency take before a IRS levy can be issued?

The IRS will usually levy only after these four requirements are met:

a. The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);

b. You neglected or refused to pay the tax; and

the IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (final levy notice) at least 30 days before the levy. The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested. Please note: if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

c. The IRS sent you advance notification of Third Party Contact notifying you that IRS may contact third parties regarding the determination or collection of your tax liability.

When will the IRS issue a levy?

If you fail to pay your taxes or fail to make arrangements to settle your debt, and the IRS determines that a levy is the next appropriate action, the IRS may order a levy on any property or right to property you own or have an interest in. As an example, the IRS could levy property that is yours, but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions). Or, the IRS could seize and sell property that you hold (such as your car, boat or house).

IRS Levy - Wage Garnishment The tax professionals at Flat Fee Tax Relief routinely have an IRS levy stopped and released in one day. Our teams are strategically located in Clearwater, Florida, and San Diego. Being available from 8 A.M. Eastern to 6 P.M. Pacific time. These hours are a distinct advantage when having an IRS levy is of paramount importance.

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