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.
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
First, we will review your situation and determine where you are in the collection process.
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.
Finally, we will contact the IRS to request your levy relief.