Essentially, a tax levy takes place when the IRS claims your property as settlement for the tax debt that you owe. By law, the IRS does not have to get any support for these events within a court. Additionally, the IRS is permitted to take any sort of property that you have in replace for a payment. This means that property, such as a home, car, or anything of real value can be used as a settlement for your debt.

The IRS is permitted to sell your possessions so they can lessen your tax debt or the amount you owe. Another alternative is that the IRS can confiscate money from your salary and wages to get their payment. Regardless of if you have access to money from loans or you took a life insurance policy, the IRS is able to gain money from these elements to guarantee that you pay the full amount that is owed for your taxes.

However, this does not mean that the IRS currently seeks individuals that it can levy in order to acquire additional money. A levy only takes place when the person seems to be neglecting to make payments. Firstly, the IRS will get in touch with you and clarify that a payment is due for your taxes. If you overlook the original contact, they will try to contact you again. If it seems that you are purposely ignoring them, they will send a letter explaining to you that they intend to levy you and notify you about a hearing that you can go to within 30 days. If you do not take any action, you will be levied.

In most cases, the IRS will want to work with you instead of getting ahold of you about the tax levy. People who are avoiding making their payments or have refused to pay the IRS have a huge chance of experiencing a levy. Of course, there are also situations where you can get a levy notice but there is no corresponding action. For instance, if you get a notice but you have already made all of your payments, you are not expected to have to deal with a levy. Additionally, if the IRS has made errors in determining the levy, there is not a large possibility that it will truly happen.