If you owe back taxes to the IRS or Franchise Tax Board, your income and assets, including real and personal property, can be pursued by the taxing authorities as a means of collecting the tax liability.
The IRS has the authority to collect unpaid taxes by issuing a bank levy to one or more of a taxpayer’s bank accounts. The levy can attach to money within a savings account, checking account, retirement account, and other accounts, such as brokerage accounts. The IRS or state taxing authority may also issue a levy notice to your employer, resulting in an ongoing wage garnishment until the levy is either satisfied or released. Wage levies and bank levies are legal documents that recipients must comply with.
Most bank and wage levy actions are taken by the Internal Revenue Service in an effort to grab the attention of the debtor taxpayer. If you receive a garnishment on your income or a levy at your financial institution, be sure to contact the IRS immediately to prevent further enforcement actions. As with other IRS collection actions, taxpayers can file an appeal with the agency and choose to seek assistance from a qualified tax professional.