How Levies Work

How a levy works depends on what kind of levy it is.?

A Regular Levy seizes what the taxpayer owns at the moment the levy is received.?There are two common Regular Levies that are used.?A bank levy and the other is a levy sent to 3rd parties that have paid the taxpayer in the past and reported those payments to the government.?A Regular Levy can be used more than once so don't think that if you have been levied you won't be again.??

A Continuing Levy stays in place and continues to seize what the taxpayer earns until the IRS releases it.?A Continuing Levy is used on wages and commissions.??

What can the IRS Levy?

• Wages, salary, or commission held by someone else.
• Other payments you receive, such as dividends and payments on promissory notes?
• Your bank account.?
• Your retirement account, including Qualified Pension, Profit Sharing,
• and Stock Bonus Plans under ERISA; IRAs, Retirement Plans for
• the Self-Employed (such as SEP-IRAs and Keogh Plans) and the
• Thrift Savings Plan. Depending on the terms of the plan a levy may
• attach to the funds in which you have a vested right.
• Your federal payments. As an alternative to the levy procedure
• used for other payments such as dividends and promissory
• notes, certain federal payments may be systemically seized
• through the Federal Payment Levy Program in order to pay
• your tax debt.?
• Your house, car, or other property.?

What is exempt from levy by the IRS?

• Unemployment benefits
• Certain annuity and pension benefits
• Certain service-connected disability payments
• Worker’s compensation
• Certain public assistance payments
• Minimum weekly exempt income
• Assistance under the Job Training Partnership Act
• Court-ordered child support payments
• Necessary schoolbooks and clothing
• Undelivered mail
• Certain amounts worth of fuel, provisions, furniture, personal
• effects for a household, and certain amounts worth of books and tools
• for trade, business, or professions.
• There are also limitations on our ability to seize a primary residence and certain business assets.

If you or someone you know is dealing with an IRS Levy, contact me at 702-469-9426 or [email protected].

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Image by?Markus Steidle?from?Pixabay?