If you fail to pay your taxes and the IRS determines that the next step is a tax levy they have the right to any assets you own or have an interest in. For example, the IRS can levy assets that you own but is held by another company such as your wages, retirement accounts, personal and business bank accounts, dividends, etc). Furthermore, the IRS can seize and sell assets that you own such as your home, car, and rental properties.
What is a Tax Levy?
According to the IRS, a tax levy "is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt."
What actions will the IRS take before issuing a levy
- The IRS will assess your account, determine the tax debt and send you a Notice and Demand for Payment
- Once the notice is received the debt must be paid, if you neglect or refuse to pay the tax a levy notice will be issued
- Once the IRS sends you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing, you will have at least 30 days to satisfy the debt before the levy enforced. This notice may deliver you this notice in person at your home or place of business or send it to your last known address by certified or registered mail.