tax levies
tax levies
A Tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service (IRS) under statutory
authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and
seizure by any means".[1] The general rule is that no court permission is required for the IRS to execute a section 6331 levy.[2] For
taxpayers in serious debt to the IRS, the most feared weapon in the IRS arsenal is the tax levy. Using the powers granted to the IRS in
the Internal Revenue Code, the IRS can levy upon wages, bank accounts, social security payments, accounts receivables, insurance
proceeds, real property, and, in some cases, a personal residence. Under Internal Revenue Code section 6331, the Internal Revenue
Service can "levy upon all property and rights to property" of a taxpayer who owes Federal tax. The IRS can levy upon assets that are
in the possession of the taxpayer, called a seizure, or it can levy upon assets in the possession of a third party, a bank, a brokerage
house, etc. All future statutory references will be to the Internal Revenue Code unless noted otherwise.
authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and
seizure by any means".[1] The general rule is that no court permission is required for the IRS to execute a section 6331 levy.[2] For
taxpayers in serious debt to the IRS, the most feared weapon in the IRS arsenal is the tax levy. Using the powers granted to the IRS in
the Internal Revenue Code, the IRS can levy upon wages, bank accounts, social security payments, accounts receivables, insurance
proceeds, real property, and, in some cases, a personal residence. Under Internal Revenue Code section 6331, the Internal Revenue
Service can "levy upon all property and rights to property" of a taxpayer who owes Federal tax. The IRS can levy upon assets that are
in the possession of the taxpayer, called a seizure, or it can levy upon assets in the possession of a third party, a bank, a brokerage
house, etc. All future statutory references will be to the Internal Revenue Code unless noted otherwise.
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