Common Confusion Series: What is a Levy
A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.
If you do not pay your taxes (or make arrangements to settle your debt), the IRS can and will seize and sell any type of real or personal property that you own or have an interest in. For instance,
- IRS does often seize bank accounts
- IRS could seize and sell property that you hold (such as your car, boat, or house), or
- IRS could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).
The IRS will release a levy under the following circumstances:
- The levy is proven to create an undue hardship/burden upon the taxpayer
- Payment of liability in full
- A payment arrangement (Installment Agreement) is established.
Stop stressing about your IRS issue and contact Taxation Solutions today for a free consultation! Our team is available to take your call and further define any tax problems you may have and help you take the next step back to financial freedom. For more information, visit our website at taxsolutions.net.
For a free consultation, click here and talk online with a Taxation Solutions representative now, fill out the appointment boxes to your left, or call 888-930-1016 toll free nationwide! Or in Charlotte (704) 323-6302.