An IRS levy is an extreme action by the IRS to capture particular possessions. "A Notice of Intent to Levy€ is the last notice in a series of notices mailed out by the IRS. This notice indicates the intentions of the IRS to levy specific assets if you do not reply within thirty days. The IRS will generally send out either a wage levy or a bank levy, even though they are able to levy almost any personal assets with only a few exceptions.

Levy On A Bank Account

A bank levy is a onetime levy where the IRS seizes what is in the bank account the day the levy is provided. The bank has to hold those funds for 21 days before delivering them to the IRS. The bank will deliver the funds to the IRS if the levy is not removed during this time. Unless the individual can show a severe hardship (cannot pay mortgage or rent, utilities, or that essential family requirements will be disrupted), a bank levy is difficult to have released.

A Levy On Wages

An IRS wage levy is a continual tax levy and one of the most typical forms of IRS levy. The employer is required to keep back a amount of wages, typically most of it. The IRS is required to leave the personal exemption and the standard exemption amounts based on the amount of dependents and filing status.

Replying to IRS notices and taking appropriate action or having counsel before the IRS is the ideal way to prevent a levy.

How to have a tax levy removed

An IRS levy will need to be removed by a Hardship case, an Installment Agreement or an Offer in Compromise if the taxpayer is eligible.

Also, compliance in the submitting of tax returns is necessary before a levy will be discharged.

Stop IRS levy activity through the following:

1. Pay the tax debt - For tourist tax payers this is not an option as they don't possess the money to pay the tax liability

2. Installment Agreement - A repayment plan paid in regular monthly payments to pay the tax liability.

3. Hardship case - In serious conditions or shortage of financial capability the IRS will put the case in a temporary hardship status.

4. Offer In Compromise - a one time settlement deal dependent primarily on capability to pay and assets. This will not discharge an IRS levy in and of itself.

Anyone can appeal the levy and the IRS will typically postpone the collection process while the appeal is pending. A successful appeal will discharge a levy. However, in my experience taxpayers do not establish a reason why the IRS was wrong to issue the levy or why it should be released causing very few to win in the Appeals process.