IRS levies

A levy is the taking of an asset. Most common is the bank levy. The IRS serves a levy notice on your bank for money held in your account. The account is frozen for an amount of money up to the amount owed to the IRS. If there is less in the account than you owe, the whole account is frozen for 21 days. During that time the original amount in the account is locked up. Any new money added is not part of the original levy. At the end of the 21 days the money is transferred to the IRS unless you have obtained a release from the IRS. Most levies are one-shot deals but the IRS can continue to get new levies on a daily basis. They generally don't. Part of resolving tax debts is to obtain from the IRS a release of the levy.

See Also:

• Authority to Levy;
• Gross Income;
• Seizure;