Tax Dictionary – Garnish
An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
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A wage garnishment, also referred to as a levy, is an enforced collection procedure the IRS uses to collect unpaid taxes. The IRS sends a notice to your employer that requires them to withhold a portion of your wages and send those funds to the IRS.
Your employer will use a table provided by the IRS to determine the amount of wages to be withheld based on your filing status and the number of exemptions you claim. If the wage garnishment prevents you from being able to pay basic expenses such as food and housing, contact the number on the IRS notice you received.
The Taxpayer Advocate Service (TAS) is available to ensure your rights are protected. Read the IRS definition and get insight from the experts at H&R Block.
Receive an IRS 96C letter? Learn more about letter 96C, why you received it, and how to handle it with help from the tax experts at H&R Block.
You are considered insolvent if you owe more than the value of your assets. This can be important if you received IRS Form 1099-C, Cancellation of Debt.
Get the facts from H&R Block about how long the IRS has to collect back taxes, and when the IRS can extend the collection statute expiration date (CSED).