Levies can really do a lot of damage and even ruin your life. A levy
is the IRS's way of
getting your immediate attention. What they are saying is, we have tried to communicate with you but you have ignored
us. Levies are used to seize your wages and whatever other assets you have. If you own it, they can take it. That
includes checking accounts, auto's, stocks, bonds, boats, paychecks, and even Social Security checks!
Imagine waking up one morning and finding all your bank accounts have been cleaned out. They will take every dime. If this amount did not cover what is owed, they'll keep taking your money until you cover your tax liability. They know that levying your bank account will cause checks to bounce, alerting many people that you have tax problems.
As bad as that is, a worse method is a wage levy (or garnishment). That's when a portion of your pay check goes to the IRS until the debt is paid.
The IRS can seize your assets, and sell them at auction. That includes everything you own; home, cars, boats, jewelry, motorcycles, insurance polices, retirement funds, anything of value.
