by steve | Oct 10, 2011 | Tax Levy and Wage Garnishments
What is a Tax Levy, IRS Tax Levy?
A IRS Federal Tax Levy is a legal seizure of your property to satisfy a Internal Revenue Service tax debt.
IRS Tax Levies are different from Federal Tax Liens . A Federal Tax Lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.
If you do not pay your taxes (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in.
There are two types of Federal Tax Levies the IRS sends out.
The 668A:
The 668A is a one time levy sent to banks or third parties. The party receiving the tax levy has 21 days before sending the money to IRS. That will give you time to get your tax levy released. If IRS wants more money from this source they have to sent out another tax levy.
The 668W:
The 668W is a continuous levy never stopping. This type of levy usually happens with wages. IRS will seize or take this money every time the taxpayer is due to receive monies.
All of these levies can be released usually within one week and sometimes even one day.
by steve | Jun 19, 2011 | IRS Tax Advice, Tax News
Fresh Start Tax L.L.C. A local South Florida Professional Tax Firm IRS Tax Experts Immediate Releases of Bank and Wage Levies
Hire trust, experience and personalized care! We can stop the IRS today!
If you need professional tax representation for a Federal Tax Levy or Tax Garnishments call us today for immediate releases of the IRS Tax Levies.
We are former IRS Agents, Managers and Instructors who worked out of the local South Florida IRS Offices and know the exact procedure to get you immediate IRS tax relief today. We will also close and settle your IRS case.
Over 205 years of professional tax experience and over 60 years working in the local IRS in South Florida. We were Agents, Managers and former Instructors in Miami and Ft.Lauderdale.
What are Tax Levies? They are Federal Government seizure of assets. They usually came most often as bank levies and wage garnishments.
- An individuals wages, salary, and other income can be levied seized. Wages, salary, and other income include payment for personal services in a work relationship.
Employer Threatens to Fire Taxpayer Because of a Levy
- Sometimes an employer threatens to fire an employee to avoid handling a levy. This might be a violation of 15 USC 1674.
- If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
- Refer the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
Continuous Effect of Levy on Salary and Wages
-
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, and similar items. All other levies only attach to property and rights to property that exist when the levy is served.
- When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well. Also see IRM 5.11.6.1, Retirement Income.
