Bank Levies and Wage Garnishment

What Is an IRS Bank Levy?

When the IRS issues a levy, it must be obeyed. It is important to understand what a levy can do and how to properly comply with it. A bank levy allows the IRS to take any money held in your savings or checking accounts.

Once your bank receives a Notice of Levy, it is legally required to freeze your account for a 21-day holding period before turning the funds over to the IRS. This 21-day window is your opportunity to act — and a tax attorney may be able to release the levy entirely during that time.

How Do Wage Garnishments Work?

A wage garnishment (sometimes called a wage levy) instructs your employer to withhold a portion of your paycheck and send it directly to the IRS. Depending on your filing status, the IRS can take a substantial percentage of each paycheck until the tax debt, penalties, and interest are paid in full.

Wage garnishments can create serious hardship, especially for households living paycheck-to-paycheck. Unlike many private creditors, the IRS does not need a court order to garnish wages.

Understanding Your Rights as a Taxpayer

Even when the IRS moves aggressively, U.S. tax law provides important protections. You have the right to:

Request a Collection Due Process hearing (also called a CDP hearing) within 30 days of receiving the IRS's final notice.

Challenge the underlying tax liability if you have not already had the opportunity to do so.

Negotiate an alternative resolution such as an installment agreement, Offer in Compromise, or Currently Not Collectible status.

Claim exemptions for certain income sources (such as Social Security, disability, or unemployment benefits) that may be protected from levy.

How We Stop IRS Levies and Garnishments

When you retain Michelle Turpin P.C., our tax attorneys immediately step in to stop aggressive IRS collection actions. We typically pursue one or more of the following strategies:

Requesting an immediate levy release based on financial hardship, federal tax exemptions, or errors in the underlying tax assessment.

Filing a Collection Due Process request and arguing the case before an IRS Appeals Officer.

Negotiating an installment agreement that allows you to pay the tax debt in manageable monthly payments while releasing the levy.

Submitting an Offer in Compromise to settle the tax debt for less than the full amount owed.

When to Call a Tax Attorney

If you have received an IRS levy notice, a wage garnishment, or any indication that the IRS is preparing to levy or seize property, time is critical.

Once a levy takes effect, recovering the funds or wages lost can be extremely difficult — even when the IRS acted improperly. Our tax attorneys are experienced in stopping levies quickly and getting your finances back under control.

Get Back Control of Your Finances

Bank levies and wage garnishments can be frightening — but they do not have to be permanent. With skilled legal representation, the IRS's most aggressive collection tools can often be stopped, reversed, or replaced with manageable alternatives.

If you're facing a levy or garnishment, call Michelle Turpin P.C. at (801) 685-0552 today for a confidential consultation.