What Is a Tax Levy?

What Is a Tax Levy?

The Internal Revenue Service (IRS) and the state can take major steps against you to collect the money you owe them in taxes. Many people aren’t even fully aware of all the things the government can do. They can garnish your paycheck, take money from your bank accounts, and even levy your personal property.

What Is a Tax Levy, and How Can It Affect You?

A tax levy is when the IRS seizes (takes) your personal property with the intention of using it to satisfy (pay) your tax liability. For instance, the IRS can take your house and sell it, using the proceeds from the sale of the house to pay off your tax bill.

The IRS has the legal right to take your property if you haven’t paid your tax liability, but there are some steps they have to follow first before moving to that action.

  • They must review your tax bill and send you a notice requesting that you pay your taxes.
  • You must have not paid your taxes.
  • They must send you a final notice of intent to levy as well as a notice of your right to a hearing at least thirty days prior to the levy.

What Types of Property Can They Levy?

The IRS can levy any of the following:

  • Cars, boats, RVs, motorcycles, and other vehicles
  • Homes and real estate
  • Wages
  • Bank accounts
  • Retirement accounts
  • Rental income

Contact a Tax Levy Attorney

You worked hard to obtain the property that you have, and you probably don’t want to see it go. You need your vehicle to get around, and you need your home. The IRS may only choose to go after your property as a last resort, but they can and will do so if you aren’t trying to pay your taxes.

Reach out to a tax attorney at The W Tax Group to discuss your options before it’s too late. The government is willing to negotiate if you’re willing to communicate with them and come up with solutions for handling your back taxes. Call 1-877-500-4930 for a free tax liability analysis, or send in the online contact form down below.