When a tax collector takes possession of your assets a tax levy will occur. If you have a bank account or earnings that are in what you would considered to be a safe place from the IRS think again.
A bank can be ordered to allow the Internal Revenue Service to take what you owe at any time or place to collect on that past due amount.
Because of this, tax debts are not something to play around with, tax debt problems will only get worse if not addressed. The IRS usually starts collections efforts in less drastic ways than a levy, often a lien will come first which is a strong signal they are very serious about collecting the money, and that a levy may be coming next. The federal government relies on taxes to keep our government and military operational and has a lot of power to collect on any debt they say you owe. Should you ignore the IRS efforts to contact you and make payment arrangements, they will continue to pursue the funds and a tax levy may be ordered. The IRS can seize assets that include investment accounts, retirement accounts even wages not yet earned. The IRS will have priority of getting paid even in a bankruptcy and will always get paid before any other creditors.
When a tax... ...read full post