A
garnishment or levy is a legal seizure of property that is used to
satisfy back tax debt, federal loans or delinquent
child support payments. If you do not
pay your back taxes or make installment arrangements the IRS
is authorized by United State Code (U.S.C.) Title
26 § 6331 to seize and sell any
type of property that you have a financial interest in, real or
personal.
While
U.S.C Title
26 § 6334 exempts some assets from seizure
the exceptions are few and boats, cars, houses,
equipment, wages, commissions, retirement benefits, accounts
receivable, cash value of life insurance
policies, stocks, bonds, dividends, state and federal
refunds, social security, bank accounts and any other
property that you have an interest in are generally
subject to a levies, garnishments and subsequent
seizure or sale.
When
a bank account is levied the bank will hold the funds
for 21 days so that ownership may be established but
funds deposited after the effective date of a levy are
not subject to seizure. But tax authorities will return, if
continued failure to make a payment agreement persists
and the back tax debt remains, unpaid.
The
statutory provisions of U.S.C. Title
26 § 6330(a)(2) specifies that a "notice of
intent to levy" must be sent by certified mail,
hand delivered or sent to the taxpayer's regular place
of business and must include information about the
taxpayer's rights to request a collection
due process or (C.D.P) hearing.
Whether
a levy or garnishment pertains to wages, other sources of income real
or personal property the procedures to stop, remove or
reduce the garnishment, levy or seizure are the same.
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State
and IRS Garnishments and Levies Explained
Garnishment
and Levy Help
