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.
