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Wage Garnishment Release
& Other Tax Levy Releases
When a taxpayer has unpaid taxes the IRS has the ability to seize assets she owns to pay the tax debt.
The IRS can apply a tax levy against her wages or other source(s) of income that includes, but are certainly not limited to, fees, commissions, and bonuses she earns from the moment the levy is enforced until the tax debt is paid in full. This is known as a wage garnishment. The IRS may also issue a tax levy against any bank accounts that she owns.
Where property is concerned, however, there are some limitations on what the government can seize. The taxpayer's residence cannot be seized by the IRS without first getting written approval from a magistrate or a federal judge. Nor can any personal property or real property that she uses for business purposes be taken away without first receiving written approval from an IRS district director or an assistant director.
There are also other forms of personal property that cannot be taken away from the taxpayer and that are exempt from any form of tax levy. These include some of the following:
- any school clothes or books
- IRS cannot take fuel, furniture, provisions or personal effects up to certain amounts
- IRS cannot take unemployment benefits that the taxpayer may be receiving
- anything relating to the taxpayer's business - such as tools of her trade, any books related to her business and the like IRS cannot seize any undelivered mail. However, the IRS has been known to have an IRS agent stationed at a place of business and watch the opening of mail for potential checks or income
- IRS cannot seize any of the taxpayer's pension or certain annuities
- IRS cannot seize any of her worker's compensation
- IRS cannot seize any of her judgments for support in relation to any minor dependents
It is extremely beneficial for the taxpayer to fully understand how tax levies actually work. When she has a levy on her wages or salary this levy will have an effect on her wages or salary until the tax debt is paid in full.