Wage Garnishment and Bank Levy
Wage garnishments and bank levies both involve the IRS taking your money.
With a wage garnishment, the IRS will contact your employer and demand them to withhold up to 80% from your paycheck. This money will be sent to the IRS to repay your tax debt. Once the wage garnishment begins it continues until the tax debt has been repaid in full or until you come to an agreement with the IRS for a payment schedule.
A Bank Levy is another collection method. This involves the IRS finding your bank accounts and legally removing money to satisfy your tax debt. Even if you close the account and open another one at different banking institution, the IRS will find it and again take your money without your consent until your tax debt is paid in full.
The Wage Garnishment Process
Your employer will receive a written notice that they must withhold a specified, and usually significant, dollar amount from your next eligible paycheck. Your employer will then give you the tax collection paperwork to inform you that your wages will be garnished.
The Bank Levy Process
The IRS will send a letter accompanied with a Levy Notice to your bank or brokerage informing them that the IRS is seizing money from your account. Your bank will comply and your money will be removed.
Requirements of Bank Levy/Wage Garnishment
Here is what is required from the IRS to proceed with a Wage Garnishment or Bank Levy:
- The taxpayer must have neglected or refused to pay the tax debt and,
- The IRS must have assessed the tax debt and sent a IRS Levy Notice and Demand for Payment
You need a tax relief professional on your side immediately if you are experiencing these collection methods.
What to do if Levied?
If you have been levied or your wages have been garnished you have 21 days to get your money back before it becomes final. This is short time span and it is a matter to be taken urgently.
We encourage you to contact our tax professionals immediately in order to resolve your wage garnishment and bank levy problems. We are offering a free 15-miute consultation to taxpayers who call right now.