Many IRS Collection employees take time off during the Holidays which can pose challenges for those delinquent taxpayers that have received a levy just before the Holiday hiatus. If your Revenue Officer is out of the office for two weeks and you’re trying to get a bank levy released before the 21 day hold expires, you could be out of luck due to an empty IRS office.
The IRS has an unwritten rule about enforced collection activities during the Holidays. Most IRS Collection employees will not send out bank account levies, A/R levies, wage garnishments or other seizures during the last two weeks of the year. That doesn’t mean you’re absolutely safe from it, but delinquent taxpayer’s won’t wake up to a zero balance in their bank account on Christmas Eve.
Here are a few common questions about levies, garnishments and seizures.
Do I Have a Levy or a Lien?
A lot of people mix up the words lien and levy. A tax lien is a legal claim to an asset as security for a back tax debt. It simply records a claim to the property. A levy is a seizure of an asset to satisfy a back tax debt. It actually takes the property to pay the back tax owed to the IRS. A garnishment is a continuous levy on wages, salaries and other income to pay back tax owed to the IRS. Continue reading