Asset Protection & Levy Defense

When the IRS Takes Enforcement Action

When a taxpayer fails to respond to repeated notices or fails to make arrangements for payment, the IRS escalates its collection efforts through enforced collection actions. These actions include bank levies, wage garnishments, and in extreme cases, seizure of real and personal property. The consequences are immediate and severe — and they require an equally immediate response.

Time is the most critical factor when a levy has been issued. The moment you learn of a levy or garnishment, professional intervention can mean the difference between losing assets and negotiating a resolution that preserves your financial stability. We act swiftly to engage the IRS and pursue every available avenue for relief.

Bank Levy

A bank levy is one of the most disruptive collection tools available to the IRS. When a levy is served on your financial institution, the bank is legally required to freeze the funds in your account up to the amount owed. The bank holds those funds for 21 days before remitting them to the IRS, which provides a narrow but critical window to negotiate a release.

During that 21-day hold period, you cannot access the levied funds for payroll, rent, business operations, or personal living expenses. For business owners, a single bank levy can halt operations entirely. For individuals, it can mean an inability to pay for necessities. The IRS can issue successive levies, targeting the same or different accounts, until the liability is satisfied.

We work to secure a levy release by demonstrating economic hardship, establishing a compliant payment arrangement, or showing that the levy was issued prematurely or in violation of proper procedure. The goal is to restore access to your accounts while simultaneously addressing the underlying tax liability.

Wage Garnishment

Unlike a bank levy, which is a one-time seizure of funds on deposit, a wage garnishment is a continuous levy on your income. Once the IRS serves a wage levy on your employer, your employer is legally obligated to withhold a significant portion of each paycheck and forward it directly to the IRS. The amount exempt from levy is calculated based on your filing status and number of dependents — and it is often far less than what you need to meet basic living expenses.

A wage levy remains in effect until the tax debt is fully paid, a release is negotiated, or the collection statute expires. We pursue levy releases by engaging the IRS through proper channels, demonstrating that the garnishment creates an undue economic hardship, and proposing alternative payment arrangements such as installment agreements that allow you to maintain control of your finances.

Property Seizure

In the most aggressive enforcement scenarios, the IRS can seize and sell real property, vehicles, and other tangible assets to satisfy a tax debt. While property seizures are less common than bank levies or wage garnishments, they do occur — particularly when the IRS determines that the taxpayer has been unresponsive or uncooperative over an extended period.

Before seizing property, the IRS must follow specific procedural requirements, including providing a final notice of intent to levy and offering a Collection Due Process hearing. These procedural safeguards represent opportunities to intervene and propose alternatives. We analyze each case to identify whether proper procedures were followed and pursue every available defense to protect our clients’ assets.

Getting Levies Released

The IRS is required to release a levy if certain conditions are met: if the underlying liability is satisfied, if the collection statute has expired, if releasing the levy will facilitate collection, or if the taxpayer enters into an installment agreement. We evaluate which path provides the most effective and expedient relief based on the client’s specific financial situation.

In many cases, simply bringing a taxpayer into compliance — filing all outstanding returns, providing financial documentation, and making a good-faith proposal — is sufficient to secure a levy release. The key is taking decisive action before the 21-day bank hold expires or before a wage garnishment causes lasting financial damage.