A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens; a lien is a claim used as security for a tax debt, while a levy actually takes the property.
The IRS may seize and sell any type of real or personal property that you own or have an interest in if you fail to pay your taxes or make arrangements to settle your debt. Below are some possible scenarios.
The IRS could seize and sell property that you hold (such as your car, boat, or house).
The IRS could levy property that is yours but is held by someone else (including but not limited to your wages, commissions, bank accounts, dividends, rental income, or the cash loan value of your life insurance).
How to Respond to a Bank Levy
Acting quickly is key in order to stop or release a bank levy. There are a variety of approaches to releasing your bank levy depending on your tax and financial status. The IRS would much rather resolve your tax issue than levy your bank account.
When you obtain professional help to resolve your bank levy, you show the IRS that you intend to cooperate in resolving your tax debt, as well. We want to help you get the best outcome for your personal financial situation, not just what the IRS wants you to do.
Let us assist you in dealing with this complex and often frightening issue.