IRS Levies and Wage Garnishments
When the IRS Takes It Directly From Your Paycheck or Bank Account
A levy is not a warning letter. It is the IRS actually taking your money—from your employer, your bank, or your property—to satisfy a tax debt you have not resolved. If you have received a Final Notice of Intent to Levy, you have a narrow window to act before the seizure begins.
At Alan Goldstein & Associates, we treat levies and garnishments as emergencies. We move quickly to stop the seizure, protect your income, and negotiate a permanent resolution.
The Issue: How IRS Levies Work
A levy is a legal seizure of your property or rights to property to satisfy a tax debt . It is different from a lien. A lien is a claim against your property as security for the debt; a levy actually takes the property .
Wage Garnishments (Wage Levies)
An IRS wage garnishment—officially called a wage levy—requires your employer to send a portion of each paycheck directly to the IRS . Unlike a private creditor garnishment, an IRS wage levy is continuous. It remains in effect with every paycheck until the debt is paid, the levy is released, or another resolution is reached .
The IRS does not take everything. It calculates an exempt amount based on your filing status and dependents, leaving you with a portion of your pay for basic living expenses . But in practice, many taxpayers find the remaining income is not enough to cover rent, food, and other necessities. The IRS can also seize 100% of separate payments like bonuses, because the exempt amount is typically exhausted by your regular paycheck .
Bank Levies
A bank levy is a one-time seizure. The IRS sends a Notice of Levy to your bank, and the bank is legally required to freeze the funds in your account (up to the amount owed) for 21 days . After that holding period, if the issue is unresolved, the money is sent to the IRS.
There is no limit on how often the IRS can levy your bank account. If you deposit more money after the first levy, the IRS can issue a new levy at any time until the debt is paid .
Seizure of Property
The IRS can also seize and sell personal property, vehicles, and real estate to satisfy unpaid taxes . For real property, the IRS must provide public notice of sale, and the sale generally occurs no sooner than 10 days after the notice . Taxpayers may have a right to redeem real property after sale under certain conditions.
The Warning You May Have Already Received
The IRS cannot levy without first sending you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (often called Letter 1058 or LT11) at least 30 days before the levy action . This notice is your final opportunity to resolve the debt or request a Collection Due Process (CDP) hearing.
If you received this notice and did nothing, the levy may already be in motion. If you have not yet received it, but you owe back taxes, the notice may be coming. Either way, the time to act is now.
Why Choose Alan Goldstein & Associates?
- Emergency Response: We treat levies as urgent. We contact the IRS immediately to establish grounds for release and stop the seizure.
- Hardship Defense: If the levy is preventing you from meeting basic living expenses, the IRS is required to consider releasing it. We document your hardship properly and present it persuasively.
- Collection Due Process: If you are within the 30-day window after your Final Notice, we can file a CDP hearing request to halt collection and negotiate before an IRS Appeals Officer.
- Permanent Resolution: Stopping the levy is only the first step. We negotiate installment agreements, Offers in Compromise, or Currently Not Collectible status to ensure the IRS does not resume collection.
Take the First Step Toward Financial Freedom
Every paycheck the IRS takes is money you cannot get back without a fight. Do not wait for the next levy notice or the next garnished paycheck.
Contact Alan Goldstein & Associates today for a confidential consultation. Let us help you stop the levy and get back in control of your income.