Tax Levy

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A Tax Levy is a legal act whereby a tax authority has the power of distraint or seizure in order to satisfy a taxpayer debt.



References

2022

  • (Wikipedia, 2022) ⇒ https://en.wikipedia.org/wiki/Tax_levy Retrieved:2022-8-28.
    • A tax levy under United States federal law is an administrative action by the Internal Revenue Service (IRS) under statutory authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and seizure by any means". [1] The general rule is that no court permission is required for the IRS to execute a tax levy. [2]

      While the government relies mainly on voluntary payment of tax, it retains the power of levy to collect involuntarily from those who persistently refuse to pay. The IRS can levy upon wages, bank accounts, social security payments, accounts receivables, insurance proceeds, real property, and, in some cases, a personal residence. Under Internal Revenue Code section 6331, the Internal Revenue Service can "levy upon all property and rights to property" of a taxpayer who owes Federal tax. The IRS can levy upon assets that are in the possession of the taxpayer, called a seizure, or it can levy upon assets in the possession of a third party, a bank, a brokerage house, etc. All future statutory references will be to the Internal Revenue Code unless noted otherwise.

  1. See 26 U.S.C. § 7701(a)(21) and 26 U.S.C. § 6331(b).
  2. See Brian v. Gugin, 853 F. Supp. 358, 94-1 U.S. Tax Cas. (CCH) paragr. 50,278 (D. Idaho 1994), aff'd, 95-1 U.S. Tax Cas. (CCH) paragr. 50,067 (9th Cir. 1995). The IRS may be required to obtain court permission in the case of bankruptcy; see .

2016

2008