How are taxes levied?

Answer 1

When you have tax debt, levies are the IRS' way of processing enforced collections. Simply put, it is the IRS' way of getting their money without you forking it over voluntarily. There are two types: bank and wage.

Bank levies are one time sweeps of your bank account. Once taken, this money is usually impossible to get back unless you act quickly.

Wage levies, also called wage garnishments, are continuous deductions from your paycheck (up to 80%). But, they can usually be ended by creating some type of payment arrangement with the IRS.

See this article for more information:

http://www.effectur.com/detail.aspx?id=682

Hope that helps!

Andrea

www.TaxFacts4U.com