What is the thing called IRS levy? 8 Answers as of April 21, 2015

I just received a notice saying that a levy is going up against me from the IRS. I have been trying to pay my back taxes and I have been trying to call them and file documents but keep just getting the runaround. How serious is a levy? What should I do now?

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Greene Law Firm, P.A.
Greene Law Firm, P.A. | David B. Greene
There are two different types of IRS levy: the levy on wages takes a certain percentage of your gross income per pay period and leaves you the rest. It continues until it is released by the IRS. The bank levy takes all the money in your bank account on the day the bank receives the levy. It is only good for one day.
Answer Applies to: South Carolina
Replied: 4/21/2015
Campbell Law Offices, LLC
Campbell Law Offices, LLC | Linda S. Campbell
When the IRS issues a levy notice they can levy your bank account, paycheck, funds owed to you by a third party, etc. If you have been unsuccessful with resolving this on your own then you really should hire a tax attorney to assist you. Most of us offer a free consultation and we frequently achieve a better result than a taxpayer does on their own. If you cannot afford to pay an attorney to help you, try calling a Low Income Taxpayer Clinic. Here is a link to find a clinic near you http://www.taxpayeradvocate.irs.gov/about/litc There are income limits and many clinics have a waiting list. If they are unable to help you then try the Taxpayer Advocate Service (TAS). Keep in mind that TAS will not offer you any legal advice and you may not get as good of a result as you would with an attorney.
Answer Applies to: Connecticut
Replied: 4/15/2015
McKenzie,Wilkes & Mahmoud | Henry Nasif Mahmoud
A levy is serious. They can seize your bank account, seize any federal or state tax refunds or seize any other assets including garnishing your wages. You must either file for a hearing or an appeal to prevent the collection action.
Answer Applies to: Illinois
Replied: 4/14/2015
Law Offices of Matthew W. Stanley | Matthew W. Stanley
Levy is another word for seizure. When the IRS levies property, it takes the property from you. Typically, the first levy is on a bank account. An IRS threat to levy is a serious matter. You should do two things in response to the threat. In trying to contact the IRS by phone, you started with the right first step. As a second step, send a letter to the office that issued the levy and ask that you be contacted by phone. Explain that you want to solve the collection problem. Keep pursuing these two steps and don't let IRS representatives put you off. If you don't like the response you're getting, ask to be put in touch with a manager.
Answer Applies to: Washington
Replied: 4/14/2015
Ronald K. Nims LLC | Ronald K. Nims
A levy is a lien against any property that you own. There are basically two kinds, one is filed with the county and acts like a mortgage against any real estate that you own. The other is a garnishment of your wages, the cash in your bank account, any investments you have with a stockbroker. Levies are extremely serious not only can you lose important assets but they are public records. Having a tax levy will ruin your credit. In your situation, you should consult a tax pro immediately.
Answer Applies to: Ohio
Replied: 4/14/2015
    Mankus & Marchan, LTD
    Mankus & Marchan, LTD | Tony Mankus
    An IRS levy can garnish your wages, seize your bank account, or any other assets you may own, such as an automobile, stocks, real estate, etc. You need to arrange an installment agreement with IRS, or make an offer to settle with IRS for some lesser amount. You should contact a good tax attorney to represent you in this matter.
    Answer Applies to: Illinois
    Replied: 4/14/2015
    James Oberholtzer, Attorney at Law
    James Oberholtzer, Attorney at Law | James Oberholtzer
    A levy is when the IRS seizes your assets. They can come and take away whatever assets you own. They usually start with liquid assets in bank accounts and then move onto valuable objects like cars or furniture. Yes, it is very serious.
    Answer Applies to: Oregon
    Replied: 4/14/2015
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    A levy is a serious matter. A levy is where, as examples, the IRS can take the money in your bank accounts or require your employer to withhold money form your paycheck. If you have been unable to work out an arrangement with the IRS and you are trying to file document and "getting the run around", it may be best for you to consult with an attorney, CPA or enrolled agent who has experience in tax resolution work. It is less work and less expensive to resolve matters before a levy occurs than afterward.
    Answer Applies to: California
    Replied: 4/14/2015
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