Tax Levies

One of the most common method the IRS and state uses to collect unpaid taxes is a levy, or legal seizure of your property. The IRS may issue a bank levy, forcing your bank to freeze your accounts and send them directly to the IRS. They may also send a notice to your employer and force a portion of your wages be sent directly to the IRS and state. In some extreme cases, the IRS may levy your assets such as your house and cars. However, a letter will be sent to the taxpayer before a levy occurs, giving you time to react. However, certain states (eg. California) may levy your bank account and not give notice until the levy has already occured.