• October 9, 2017
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A tax levy is one of the most destructive collection tools used by the IRS, which involves legal seizure of taxpayers’ assets against outstanding tax bills. A tax levy should, however, not to be confused with a tax lien. A tax lien is only a claim made against taxpayers asset, whereas a tax levy is the legal seizure of the assets. If you have any unpaid tax bill, the tax authority can levy your bank accounts, financial belongings, investment accounts, wages, pension, insurance policies,  and even physical assets to satisfy a tax debt. The post outlines various types of tax levies charged by the IRS and the way out.

Bank Levy

During a bank levy, the tax authority contacts your bank and demands to freeze the available fund in your bank account and deduct money depending on the owed amount.  In case the debt is not fulfilled in the first go, the IRS would keep coming back to your account as and when the money appears. When it comes to the bank levy, any account on your name is at the risk of seizure whether it is your money or not.  Financial institutions are under obligation to comply with IRS requests as non-compliance makes them liable for severe penalties. Once your bank account is under the IRS scrutiny, you may not be able to access the funds.

Wage Garnishment

A wage levy, also known as wage garnishment, is the deduction of a part of your wage against an outstanding tax debt. The IRS contacts your employer demanding a certain percentage of your pay for unpaid taxes. Your employers will never deny such request, as doing so would make them liable for the amount owed. Wage garnishment is a continuous process and the amount would continue to be sent to the IRS unless you have any alternatives to fulfil the debt or the tax authority has collected enough amount. That said, the wage garnishment can be reduced or removed, if a tax attorney proves your hardship to pay the taxes.

The Way Forward

The IRS uses levies as a last resort to collect tax dues and is willing to make other arrangements to resolve outstanding tax bills. There are various arrangements that can help you stop tax levy, such as payment plan, offer in compromise, and appeal among others. If you are facing any tax levy, it is advisable to take swift action or immediately seek professional assistance for IRS problem resolution. If you are looking for any IRS tax problem help, feel free to get in touch with The Law Offices of Nick Nemeth. Leveraging more than a decade, we are helping businesses and individuals with various IRS tax debt problems. Call us at (972) 426-2553 or fill out the contact form and we will get back to you shortly.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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