The 10 Most Important Things you should know about IRS tax levies and garnishments are what rights the IRS has and what rights you have as a taxpayer to stop IRS collections.

Four Things the IRS Can Do to Enforce Collections

  1. The IRS can levy income or assets where (1) you have been assessed a tax liability and (2) the IRS has demanded payment;
  2. An IRS levy can result in the garnishment of your bank assets (including bank accounts, investments, boat, car and even a seizure and sale of your home;
  3. If a bank account is levied, it only be applied to money that is already in the account when the levy is served – it does not affect money that you may deposit later;
  4. The IRS can place a continuous levy against your personal and business income — where the levy attaches to future paychecks (wages, salaries, bonuses and commissions) until the levy is released;

Six Things You Can Do When Facing an IRS Levy or Garnishment

  1. The IRS levy is improper where you have not received a Final Notice of Intent to Levy, Notice of Your Right to a Hearing, Notice and Demand for Payment, Notice of Intention to Levy, and a Notice of Your Right to a Collection Due Process Hearing;
  2. You have a right to appeal all IRS levy actions if you don’t agree;
  3. You have the right to redeem levied property;
  4. You have 30 days to make payment after the final notice of levy is issued;
  5. The notice and demand for payment must be left at your home or business or mailed to your last known address;
  6. There is judicial review of an adverse IRS appeal decision for “abuse of discretion.”
The Collections Division of the Internal Revenue Service (IRS) has a job to do – Get you to pay the taxes you owe. You, the taxpayer, have certain rights where the IRS has exerted pressure and levied your property or garnished your income. Naturally, just paying your taxes is certainly the easiest way to solve your tax problem.
But what if you can’t pay your taxes? What if you can pay your taxes at some future date – just not now. What if, through no fault of your own, you just fell behind in paying your taxes?
You have certain rights when dealing with the IRS. Perhaps your most important legal right is the right to professional representation – the right to have a tax attorney, CPA or enrolled agent, represent you and protect your rights before the IRS.
The IRS has rights too. They receive special treatment in the collection of taxes you may owe. They often get paid before other parties you may owe money to, and they have the right to levy your bank accounts and garnish your wages or other income where you’re not paying your taxes. No other creditors have the rights that are afforded to the IRS.
This is why professional representation is so important. You need to be on a level playing field when dealing with the IRS.
One out of six Americans currently have IRS problems of one type or another. You’re not alone.