Bank Levies, Wage Levies or Garnishments
Bank and wage levies or garnishments are the most effective way for the IRS to collect on what you owe in delinquent taxes, for the simple reason that they have the power to gain full control of your existing and future assets – leaving you with no other options. With a bank levy, the IRS places a freeze on your bank accounts so that your assets can be used to pay toward your outstanding tax debt. Financial institutions must comply with IRS requests. Even worse is that any resulting unpaid checks or bank fees only compound your financial problems.
A wage levy or garnishments work in much the same way, except this involves the IRS sending your employer a written notice requesting a portion of your pay be sent as payment for your outstanding tax bill. Similar to bank levies, employers must also comply with wage levies.
Even if you are self-employed, your clients or customers will receive a demand for collection in what’s known as a “payor” levy. The payments they would normally make to you are transferred to the IRS instead.
Bottom line: Your IRS wage garnishment remains in place until you pay your tax liability or until a levy release is negotiated.
To Remove Bank Levies, Wage Levies or Garnishments Call Pairett CPA, PLLC Immediately at 940-498-7422
If you receive a notice from the IRS with an intent to levy, please call Pairett CPA, PLLC immediately at 940-498-7422. We can help you release a levy, and in some cases, stop it before it happens.