IRS Levy Release/
Garnishment Release

How Is a Tax Levy Different than a Lien?

A levy is much different than a lien. With an IRS tax lien, the IRS places a claim on future liquidation of your property. With a levy, the IRS actually seizes and liquidates your property without your permission in an attempt to recover the taxes owed. Examples might include:

• Freezing and/or draining your bank accounts
• Freezing other assets, such as wages, social security income, rental income, retirement accounts, dividends, and accounts receivable income.
• Seizing any real estate you own and selling it to satisfy your tax debt.
• Seizing and selling other personal property, such as vehicles, boats, and other valuables.

Wage Garnishments

Another form of levy is wage garnishment. With a garnishment, the IRS effectively requires your employer to pay a pre-determined amount toward your taxes out of your paychecks. This measure may be less aggressive than seizing property or freezing accounts, but for people living on a tight budget, a garnishment can still be financially devastating.

Resolving Tax Levies and Garnishments

The IRS typically reserves tax levies and garnishments for people and businesses who they feel can pay their taxes but aren’t doing enough to satisfy the debt. The IRS must also send you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days before the levy is initiated. The best way to avoid or reverse a levy or garnishment is to petition the IRS for a release. Ways to secure an IRS tax levy release include:

• Demonstrating a severe economic hardship as a result of the levy (i.e., showing you cannot pay your reasonable bills and expenses as due to the levy)
• Demonstrating that releasing the levy will better enable you to pay your taxes
• Entering into an installment agreement that includes a levy release as part of the terms
• Demonstrating that the IRS failed to give you advance notice before imposing a levy

The experts at the Highland Tax Group have a keen understanding of how IRS tax levies and garnishments work, and we have extensive experience negotiating levy releases for our clients. If you are under threat of a tax levy or garnishment from the IRS, we can take steps now to prevent it from happening. If you’re already under a levy, we can negotiate for a release on your behalf. For more information, reach out using the contact form below.