What is IRS Levy
A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt.
When you do not pay your taxes or you do not many any arrangements with IRS to take care of your tax debt, IRS will send you notices to demand you to pay.
They will send you a first notice, a second notice and then they will send you a final notice of intent to levy and notice of your right to a hearing (levy notice), at least 30 days before the Levy.
IRS may leave it at your home or your workplace/business or your last known address by certified or registered mail, return receipt requested.
The following things IRS can levy on your properties or properties held by third parties:
- Your bank/investment accounts (cash, dividends, interests, retirement accounts, cash value of your life insurance)
- From your Customer/tenants payments (account receivables, rental income)
- From your employment (wages, commissions)
June 8, 2020