Key Insights
- A tax levy allows the IRS to legally seize your assets to satisfy unpaid taxes.
- Types of levies include bank levies, wage garnishments, and property seizures.
- The IRS must send a final notice before levying — acting quickly may stop it.
- TaxWave can pursue levy release through an approved resolution program.
What Is a Tax Levy?
A tax levy is a legal seizure of your property by the IRS to satisfy a tax debt. Unlike a tax lien, which is a claim against your property, a levy actually takes your property. The IRS can seize wages, bank accounts, retirement accounts, real estate, vehicles, and other assets.
The IRS is required by law to send a "Final Notice of Intent to Levy" (CP90 or Letter 1058) at least 30 days before taking action. This notice is your window to act. If you receive one, contacting TaxWave immediately may stop the levy before any assets are seized.
Types of Tax Levies
Bank Account Levy
The IRS instructs your bank to freeze and surrender funds from your account. You have 21 days after the bank freeze before funds are sent to the IRS — acting within this window may allow recovery.
Wage Garnishment (Continuous Levy)
The IRS contacts your employer directly and takes a portion of every paycheck until the debt is resolved. Unlike a bank levy, wage garnishment is continuous — it keeps happening every pay period.
Property Seizure
In serious cases, the IRS can seize real property, vehicles, business assets, and other valuables. This is less common but represents the most severe form of levy.
Social Security / Retirement Levy
The IRS can levy Social Security benefits and certain retirement income. Federal pension income is not exempt from levy.
How TaxWave Stops a Levy
When you work with TaxWave, we establish power of attorney and communicate directly with the IRS on your behalf. Our team immediately assesses your situation, identifies the fastest path to levy release, and puts that plan into action.
- We pull your IRS transcripts to understand the full scope of your debt.
- We file all missing returns to bring you into IRS compliance.
- We negotiate an approved resolution — installment agreement, OIC, or CNC status.
- Once a resolution is in place, the IRS is required to release the levy.
- We pursue lien withdrawal where possible to protect your credit.
Received a Final Notice of Levy?
You may have as little as 30 days before the IRS seizes your assets. Do not wait. Call TaxWave immediately at (800) 829-9283.