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IRS Levies

irs tax levy

The IRS & Tax Levies

Of all the precarious situations a person or company can get into with the IRS, a levy is one of the worst. A levy does not just randomly happen; it is a penalty that the IRS utilizes when a taxpayer fails to pay taxes. Typically, when a taxpayer owes taxes and does not pay them, the IRS will file a lien on their property (home or other personal property). The lien places a claim on the property. At this juncture, taxpayers often become more motivated to pay their tax debt and even go to extremes, like borrowing the money or selling off assets, in order to do so.

The Lien & Levy Process

After a lien is filed, if the debt is not paid, the IRS may enforce their claim on the property and seize it, or take ownership of it- a levy. They may levy your bank account, your wages, or your home. At this point, the IRS is acting as a debt collector and they will do everything within their legal rights to collect on the debt that is owed the government.

Contacting a CPA for Help

Before a levy is executed, meaning property seized, the IR