A tax levy is the legal seizure of taxpayers’ assets to satisfy back taxes owed. The IRS can seize property to satisfy your tax debts without taking you to court and winning a judgment against you. A bank or credit card company, on the other hand, would have to bring a lawsuit against you to collect any money. The IRS is also not subject to the state and federal garnishment limitations, which means it can leave you with very little money each week to live on.
You can contest an IRS assessment, but only if you do so promptly. The IRS may review your protest and agree with you. If you have protested in a timely way, you will normally receive a response that the IRS is transferring your case to the IRS Appeals Division. The vast majority of tax cases get resolved at the Appeals level. Even after the IRS places a lien on property or levies on a bank account, this can be reversed. However, it is usually harder and more expensive to undo something, and it usually requires professional tax help.
If the IRS wants to continue levying your bank account, they must generate another 668A Notice of Levy.
On the other hand, a 668W is a Continuous Levy. Once the levy is issued to the third-party, they must continuously turn over money to the Internal Revenue Service.
The IRS can send ONE NOTICE to your bank and seize every penny you’ve got, and apply it toward your tax bill. To make it worse, you may never realize it until the money is already gone…whether you’re in line to purchase groceries or at your office opening correspondence that tells you your check for materials has bounced. The IRS could also issue a Notice of Levy to the taxpayer’s employer for the taxpayer’s wages, or to a company for which the taxpayer performs services as an independent contractor. A levy of wages or other periodic income continues until released or the tax obligation is satisfied.
This is no laughing matter. Contact us today for help with this!