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Federal Tax Levy Collection Actions in Detail (Part I)

Federal Tax Levy Collection Actions in Detail (Part I)

Levy: A seizure of property

While a federal tax lien is a legal claim against your property, a levy is a legal seizure that actually takes your property (such as your house or car) or your rights to property (such as your income, bank account, retirement account or Social Security payments) to satisfy your tax debt.

The IRS can’t seize your property if you have a current or pending Installment Agreement, Offer in Compromise, or if the they agree that you’re unable to pay due to economic hardship, meaning seizing your property would result in your inability to meet basic, reasonable living expenses.

What you should do if your property is seized (“levied”)?

If your property or federal payments are seized, call the number on your levy notice or 1-800-829-1040. If you’re already working with an IRS employee, call him or her for assistance.

Next week: Reasons the IRS may seize (“levy”) your property or rights to property

(IRS Publication 594 and (TTT 03/24/2020