Bank Levy & Wage Garnishment


IRS Levies are designed to impact you daily life….to get your attention.

An IRS levy is the direct action taken by the IRS to collect taxes.

Bank Account Levies Can Empty Your Checking and Savings!

When the IRS levies a bank account, the bank is required to remove whatever amount is available in your account that day (up to the amount of the IRS levy) and send it to the IRS within 21 days, unless notified otherwise by the IRS.

This type of levy does not affect any future deposits made into your bank account, unless and until the IRS issues another Bank Account Levy.

Wage Garnishment Takes Away Money on which You Depend, taking away most of your paycheck.

IRS wage garnishment is a very powerful tool used by taxing authorities to force collection of taxes they allege you owe by taking money each week or month from your paycheck.

Once a tax wage garnishment is filed with your employer – even if you own and control the business – your employer is required to collect a significant percentage of your pay and forward it to the IRS.

Clearly, wage garnishments can have substantial negative impacts including:

  1. Loss of a significant portion of your regular income — money that you need to live and pay your bills will instead be paid by your employer directly to the IRS, and
  2. Your esteem in the eyes of your employer and fellow employees may be diminished.

Wage garnishments typically stay in effect until the IRS is paid in full or until the IRS agrees to release the garnishment.

Self Employed Levy – IRS can and will issue levies to any and all businesses and people who have issue you or your business 1099 in the last several years.  The levies sent to them and states that any funds they owe you are to be forwarded to IRS immediately. “OUCH”!!

The person, company or institution that is served the levy MUST comply OR face own IRS issue for not complying.  The additional paperwork this person, company, institution is faced with to comply with the levy usually causes the taxpayers relationship to suffer with the person or entity being levied

Levies are usually the result of poor or no communication with the IRS or not completing the what the IRS is asking in the time agreed to. (in the situation where tax returns need to be filed)

IRS Liens (while not a collection tool) attach to any real estate property you own and will impact your Borrowing Ability and or Capacity! It also makes your tax situation public knowledge.….(you will notice your mailbox blowing up with all sorts of marketing junk from the ambulance chaser firms that want to gouge your pocket for their, they might even call or text you.   

Federal Tax Liens are public records that indicate you owe the IRS various taxes. They are filed with the County Clerk in the county from which you or your business operates.  Because they are public records they will show up on your credit report. This often makes it difficult and sometimes even impossible for a taxpayer to obtain any financing, even for an automobile or a home.

In addition, Federal Tax Liens can tie up your personal property and real estate. Once a Federal Tax Lien is filed against your property, you cannot sell or transfer the property without having the lien removed so that you can transfer a clear title.

Often, taxpayers find themselves in a no-win situation where they have property against which they would like to borrow, however, due to the Federal Tax Lien, they cannot use it as collateral secure a loan.

You Have a Right to Tax Representation

If you have been contacted by the IRS or your state’s Department of Taxation, or have received tax liens, levies or notices of IRS intention to do so, contact us for a free confidential initial half-hour tax consultation.

In many but not all circumstances we can stop a wage or levy on your bank account and can get them released. Don’t allow an IRS wage levy damage your finances. Receive IRS tax help from the experienced staff here at The Schlichting Group, today.