When a tax assessment has been made against a taxpayer, the IRS is required to give notice and demand for payment within 60 days.  If the taxpayer thereafter fails to pay, a federal tax lien arises and attaches to all property and property rights either owned on or acquired after the date of attachment.  A lien does not result in the actual transfer of the taxpayer’s property to the IRS.  Rather, the IRS must levy upon the taxpayer’s property or property rights (or, alternatively, file suit in court to enforce the lien) before the transfer to the IRS is deemed to occur.

Levies can be directed to the taxpayer and cover tangible real and personal property owned by the taxpayer, or served on third parties who hold intangible property belonging to the taxpayer (including bank deposits, wages and debt owed to the taxpayer).  The first category is often referred to as a seizure, while the second category is a levy.

If you receive a levy notice is is important you respond quickly before a seizure is issued.  To have have the levy released you have to pay the amount due , enter into an installment agreement or another arrangement with the IRS.  Contact us to learn how we can assist you get relief from a tax levy.