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IRS Levies | Bank Levy and IRS Garnishment | Flat Fee Tax Service

Updated: Nov 17, 2019

Stop a wage garnishment or bank levy (in one day). IRS Levies - Wage Garnishment - Bank Levy

The IRS (federal government) has broad powers to seize and confiscate assets in order to satisfy unpaid tax debt. The IRS may issue a tax levy against an individual's wages, salary, and other income, including fees, bonuses, and commissions. This type of tax levy is generally called a wage garnishment. The IRS may also attempt to enforce an unpaid tax liability by issuing a tax levy against your bank account(s).

However, there are certain limitations on these powers to seize property. In the case of the taxpayer's personal residence, the IRS may not seize real property without written approval of a federal district court judge or magistrate.The IRS rarely will force a home sale unless there were serious crimes committed.

Tangible personal property or real property used in the taxpayer's trade or business may not be seized without written approval of an IRS district or assistant director. There is some property that is exempt from a tax levy, including the following:

a. wearing apparel and school books

b. fuel, provisions, furniture, and personal effects, up to a certain amount

c. unemployment benefits

d. books and tools of a trade, business, or profession, up to a certain amount

e. undelivered mail

f. certain annuity and pension payments

g. workers' compensation

h. judgments for support of minor children

It is important to note how certain IRS levies operate. A tax levy on wages and salary has a continuous effect as future paychecks are attached until the levy is satisfied or stopped and released. An IRS levy against a bank account is a one-time levy that attaches to funds in the account at the time the tax levy is received. Once a banking institution receives a notice of levy, the bank is required to freeze all of the money in the taxpayer's account(s) as of that day. The bank must then wait 21 calendar days after a levy is received before paying the funds over to the IRS. This does not give much time as the 21 day window includes Saturdays, Sundays and holidays.


The IRS would generally release a tax levy if: 1) the underlying tax debt is satisfied or becomes unenforceable due to a lapse of time (Statute of Limitations); 2) release of the tax levy would facilitate collection of the tax debt; 3) an installment payment agreement has been established; 4) the tax levy is creating a financial hardship(Currently not Collectible); or 5) a tax settlement of the tax debt is submitted through the Offer in Compromise program.

For more information on garnishments or levies, please call us for a free, confidential consultation. Call: 1-866-747-7435 If you are searching for a highly qualified tax professional to negotiate the immediate release of a tax levy or garnishment with the IRS, Flat Fee Tax Service offers our services with the highest levels of quality and professionalism. Our tax professionals routinely negotiate the release of a wage garnishment if your employer has received an order to withhold from your pay. It is understood that you need to release the tax levy as quickly as possible, since it is very likely that the levy will create a financial hardship. A Tax Attorney can also negotiate the release or modification of a bank levy, which will likely leave you with no money in your account(s) to pay your bills and may also cause checks to bounce. FLAT FEE TAX SERVICE - 1-866-747-7435