A tax levy is a legal process the IRS uses to collect unpaid taxes by seizing a taxpayer’s assets. Common types of tax levies include wage garnishments, bank levies, 1099 levies, interception of state tax refunds, property seizures, other asset seizures, and even revocation of your passport. The IRS will opt for the method that allows them to recover the owed funds most efficiently.

Here’s a closer look at what the IRS can take from you:

• Wage Garnishment: The IRS can instruct your employer to withhold a portion of your paycheck to cover your tax debt. This garnishment remains until debt, including interest and penalties, is fully paid, or until you enter into a resolution agreement.

• Bank Levy: The IRS can order your bank to freeze your funds for 21 days, preventing any withdrawals. After this period, the bank is required to send the available funds to the IRS. If the funds are insufficient, the IRS may issue repeated levies until the debt is settled.

• 1099 Levy: The IRS can issue levies to collect your current 1099 payments directly.

• Property Seizure The IRS has the authority to seize your property, auction it, and apply the proceeds toward your tax debt.

If you owe back taxes, you could be at risk of a tax levy on your assets. Strategic planning is essential to minimize the financial impact on your life. Noble Pacific Tax Resolution can help you reduce penalties and find relief.