A federal tax lien is a claim by the IRS that is registered against a taxpayer’s real or personal property for non-payment of assessed taxes, explainsBerkshire Tax Resolution.

Berkshire Tax Resolution would like you to know that, if the IRS has properly filed a federal tax lien, the Internal Revenue Service can seize and sell your real estate or personal property.  Likewise, the IRS can seek to levy property that is yours as well.  The IRS may seek to garnish your wages, or levy against your retirement accounts, dividends, bank accounts, licenses, rental income, and accounts receivables

Berkshire Tax Resolution would like to point out that The Notice of Federal Tax Lien is a document filed by the IRS to protect the federal government’s interest against other potential creditors such as bona fide purchasers and judgment creditors.

Berkshire Tax Resolution explains that Tax Levies occur in one of two ways: Bank levies and Wage Garnishments
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Berkshire Tax Resolution defines a tax levy as a seizure of property to satisfy a tax debt.  Whereas a tax lien is a claim that the Internal Revenue Service utilizes as security for payment of a tax debt, a tax levy actually takes property or wages to satisfy the debt, clarifies Berkshire Tax Resolution.

The IRS will levy once three conditions have been satisfied, explains Berkshire Tax Resolution.  First, the tax liability must have been assessed and the taxpayer must have been notified of a Demand for Payment.  Second, the taxpayer must have refused or neglected to pay the tax liability.  Finally, Berkshire Tax Resolution would like you to be aware that a Final Notice of Intent to Levy as well as a Notice of Your Right to a Hearing must have been sent by the IRS to the taxpayer at least 30 days before the tax levy was issued.

If you have been assessed by the IRS you will either be given notice in person or the IRS may leave the notice at your home or place of business, explains Berkshire Tax Resolution.  The IRS may also send the notice to your last known address by certified or registered mail along with a return receipt requested.
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Berkshire Tax Resolution would like you point out that a bank must wait 21 calendar days after a levy is served before sending payment to the Internal Revenue Service.  Then, on the next business day, the bank must turn over the taxpayer’s money.  Berkshire Tax Resolution would like to shed light on the fact that the bank will not send money that is subject to attachment or execution under judicial process. “Bank” includes credit unions, savings and loan associations, trust companies, and others described in IRC 408(n) and Treas. Reg. §301.6332–3(b).

During the 21 day holding period, a bank levy may be released, or the amount owed may decrease.  If the bank receives no release, it must send the payment after the holding period.  No additional notice is required.

The bank must send the amount in the taxpayer’s account.  However, the bank cannot send more than the amount shown on the notice of levy.

The notice of levy only reaches the amount on deposit when the levy is received.  Money deposited later is not surrendered, including deposits during the holding period, explains Berkshire Tax Resolution.  Another levy must be served by the IRS to reach this additional deposited money.  Berkshire Tax Resolution would also like you to know that the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw.

A taxpayer will be reimbursed for bank charges caused by erroneous levies, explains Berkshire Tax Resolution. 

Wage Levy or Wage Garnishment

Berkshire Tax Resolution would like to inform you that a wage garnishment requires an employer to withhold part of a taxpayer’s income or wages for the purpose of paying off the taxpayer’s debt.  Unlike a bank levy, the wage garnishment is continuous in nature, meaning the IRS will continue to receive money from your employer until either the tax debt is satisfied, the taxpayer loses or quits his job, or a negotiated agreement is reached between the taxpayer and the IRS, clarifies Berkshire Tax Resolution.

Contact Berkshire Tax Resolution’s national tax law firm today for a free no obligation consultation on releasing your IRS Wage Levy as well as stopping a wage garnishment.

Yes, a tax levy can be appealed.  In fact, in many of Berkshire Tax Resolution’s cases, Berkshire Tax Resolution has helped their clients appeal a tax levy through requesting a Collection Due Process hearing with the Office of Appeals.