The IRS's job in enforcing the tax law, is to collect. They will reach out via phone calls, field visits, and letters. If these collections methods are unsuccessful, the IRS will give legal notice that it will be moving forward with other tactics such as a wage garnishment or bank account levy.
Wage garnishment is a very powerful tool used to collect taxes owed through your employer. Once this is filed with your employer, the employer is required to collect a large percentage of each paycheck that would have normally been paid to you, but now will be paid to the IRS. The wage garnishment stays in effect until the IRS is fully paid or until they agree to release it.
Bank Account Levy's allow the IRS to present your bank with a piece of paper that requires the bank to immediately withdraw all the money you owe the IRS. Many times these bank levies are wrong, but the IRS may not know they are wrong and it’s up to you to correct the problem. Meanwhile, the checks you’re writing are bouncing all over town. The worst thing about the IRS Bank Levy is that it may capture your children’s, parent’s, girlfriend’s or spouse’s bank account, if your name happens to be on the account. Even if it’s just on there for convenience. After the bank has cleaned out all checking and savings accounts with your name on them, they send the money to the IRS. You should take this as notice that the IRS will issue another Bank Levy against you in the future to satisfy any remaining amounts owed to them. It’s kind of like hitting the lottery for the IRS, once they find out how to get your money, they will continue taking your money by issuing more bank levies.
The IRS explains that "If you do not pay your taxes (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in. For instance, they could seize and sell property that you hold (such as your car, boat, or house), or they could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash value of your life insurance, or commissions).
Our experienced tax professionals constantly conduct negotiations to release wage garnishments and bank account levies for our clients. We have proudly helped thousands of taxpayers over the years and will provide you with the expertise and compassion needed to help you get out of this difficult situation. Often times, we can get a levy released in as little as 24 hours!