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Call Today for Free Consultation

800-810-8993

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WHAT IS AN IRS BANK LEVY AND WAGE GARNISHMENT?

An IRS bank levy is a legal seizure of funds from your bank account by the IRS to cover your unpaid taxes. When the IRS levies your bank account, your money is frozen as o0f the date and time that the levy is received by the bank. 

The IRS provides a 21-day waiting period for the bank to comply with the levy which is intended to allow you time to contact the IRS and work out a settlement. 

An IRS wage garnishment is a legal procedure that allows the IRS to collect unpaid taxes by withholding a portion of your wages. The IRS can garnish your wages without obtaining a court order, and the amount they can take could drastically affect your ability to pay your bills.

The amount of your wages that can be garnished depends on your filing status, the number of dependents you have, and the amount of your standard deduction. The IRS will send a notice to your employer to start the wage garnishment process, and your employer will be required to withhold a portion of your wages until your tax debt is paid in full.  

If you owe a tax debt to the IRS, there are several ways to stop or reduce an IRS bank levy or wage garnishment. Some of these include:

  • Negotiating an installment agreement: This is an agreement between you and the IRS to pay your tax debt in monthly installments.
  • Offer in Compromise: This is an agreement between you and the IRS to settle your tax debt for less than what you owe.
  • Currently Not Collectible: This is a status that temporarily suspends collection activities by the IRS.

If you owe the IRS and are facing a wage garnishment or bank levy, call us today for your free no obligation consultation