Tax levy overview
When you owe money to the IRS and fail to pay the balance due, the IRS can issue a levy against your income or assets. The IRS will typically send you a series of notices prior to issuing a levy. Unlike a lien, which gives the IRS a legal claim against your property, a levy actually gives the government a legal right to take your property, including:
- Funds in your bank, investment and retirement accounts;
- Wages, salaries, bonuses and commissions;
- State tax refunds;
- Social security and pension payments;
- Cash value of a life insurance policy;
- Inheritances; and
- Accounts receivable and merchant accounts.
Levy relief
It is critical for you to settle your unpaid tax balance with the IRS as soon as possible. If a levy has been proposed or issued, we can help you obtain relief if you:
- Pay the balance due in full
- Prove financial hardship
- Establish a payment agreement with the IRS that does not allow a levy
- Prove the levy was issued in error
- Prove that the period the IRS has to collect the tax has expired
- Applied for an offer in compromise
- Prove that releasing the levy will help you pay more of the taxes due
Our 3-step levy relief process
Step 1
First, we will review your situation and determine where you are in the collection process.
Step 2
Next, we will determine the basis for levy relief. This step may include requesting a payment plan, proving financial hardship or one of the other options listed in Levy Relief above.
Step 3
Finally, we will contact the IRS to request your levy relief.