IRS Levy and Wage Garnishment Attorney in New Jersey & New York
An IRS bank levy or wage garnishment can freeze your bank accounts, intercept your paychecks, and create an immediate financial crisis. If you received a final notice of intent to levy, wage garnishment notice, or bank levy threat, timing is critical.
Todd S. Unger, Esq. helps taxpayers respond quickly to IRS collection enforcement, preserve Collection Due Process appeal rights, secure immediate levy releases when available, and establish sustainable tax resolution options before further assets are seized.
What Can Happen If the IRS Starts Collecting?
An IRS bank account levy and wage garnishment are among the most aggressive enforcement tools available to federal tax authorities. Unlike a federal tax lien—which acts as a legal claim securing tax debt against your property—a levy is the actual physical seizure of your money, income, or assets to satisfy back taxes.
Paychecks Garnished
The IRS orders your employer to divert a substantial portion of your wages directly to the government every pay period until the debt is released.
Bank Accounts Frozen
A bank levy freezes account balances up to the tax debt amount, causing bounced checks, missed rent, and immediate financial hardship.
Business Cash Flow Seized
For business owners, levies hit operating accounts, credit merchant processors, and accounts receivable, threatening corporate survival.
Silence is the worst response. IRS collection notices carry strict statutory deadlines. Missing these windows forfeits your right to appeal and grants the IRS unchecked authority to seize funds. Learn more about asset encumbrances on our federal tax liens page.
What to Do If You Received an IRS Levy or Garnishment Notice
If the IRS is threatening a wage garnishment or bank account freeze, taking immediate structured steps protects your procedural rights:
Read the Notice Code and Deadline
Identify the specific notice number (e.g., LT11, Letter 1058, CP90), tax years involved, total balance owed, and exact “file by” deadline for requesting an appeal.
Avoid Unrealistic Payment Commitments
Rushing into an uncalculated installment plan can cause default later. Financial analysis is required to determine your true ability to pay under IRS standards.
Determine If Enforced Collection Can Be Stayed
Options to stop or release levies include filing a Collection Due Process (CDP) hearing request, demonstrating economic hardship, or securing CNC hardship status.
Which IRS Notices Come Before a Levy?
Federal law requires the IRS to issue specific statutory notices before seizing property or garnishing wages. The final notice of intent to levy usually appears as an LT11, Letter 1058, or CP90 (Notice of Intent to Levy and Notice of Your Right to a Hearing).
This notice grants a strict 30-day statutory window to request a formal Collection Due Process (CDP) hearing. Filing Form 12153 within this 30-day window legally halts levy enforcement while your case is reviewed by an independent Appeals Officer.
If you received a final notice of intent to levy, review your rights on our dedicated Collection Due Process hearing page before your deadline passes.
What Happens During the 21-Day IRS Bank-Levy Hold?
When an IRS levy hits your financial institution, federal law requires the bank to freeze the funds held in the account on that specific day and enforce a strict 21-day holding period before remitting the money to the Treasury.
This 21-day window provides a critical, limited opportunity to secure an official Form 668-D (Release of Levy/Release of Property from Levy). During this period, your attorney can document severe economic hardship, correct IRS procedural errors, or negotiate an alternative resolution to release the funds before they leave the bank.
Once the 21-day hold expires, the bank transmits the money directly to the IRS, making recovery substantially more difficult.
A Bank Levy and Wage Levy Do Not Operate the Same Way
It is vital to understand the operational differences between these two enforcement mechanisms:
IRS Bank Account Levy
A bank levy captures only the funds available in your account on the exact date and time the levy is served on the bank. It is a “one-time” snapshot and does not automatically capture future deposits made after the service date (unless a new levy is served).
IRS Continuous Wage Levy
A wage garnishment is a continuous levy that attaches to all future paychecks. It remains in full effect pay period after pay period until the IRS issues an official release, the debt is paid in full, or the statutory collection statute expires.
IRS Levies Against Business Accounts & Customer Payments
Business tax collection extends beyond ordinary corporate checking accounts. Revenue officers can serve Form 668-W levies directly on your clients, commercial customers, merchant account processors, or general contractors owing you receivables.
An accounts-receivable levy diverts incoming revenue streams directly to the Treasury, destroying working capital needed for payroll, rent, inventory, and operational overhead. Securing an emergency business levy release requires proving that the seizure prevents the business from maintaining ongoing tax deposit compliance.
Learn more about specialized defense from a business tax attorney or an employment tax attorney when payroll taxes or Form 941 liabilities are involved.
Statutory Grounds for Securing an IRS Levy Release
Under Treasury Regulation § 301.6343-1, the IRS is required by law to release a levy if any of the following statutory conditions are established:
Economic Hardship and Emergency Levy Release
Statutory economic hardship exists when an IRS levy prevents you from meeting basic, necessary living expenses—including mortgage or rent payments, food, utilities, medical care, transportation, or payroll obligations.
Hardship claims require immediate financial proof. The IRS demands Collection Information Statements (Form 433-A or Form 433-F), bank statements, pay stubs, and delinquent expense bills proving that seized funds are required for necessary basic living costs.
Todd S. Unger organizes financial disclosures to present immediate hardship claims, negotiate emergency levy releases, and place accounts into Currently Not Collectible (CNC) status when appropriate.
When Levy Procedures or Balances Must Be Challenged
A levy must be legally challenged if the assessed tax balance is inaccurate, payments were misapplied, the levy attaches to property belonging to an innocent third party, notices were sent to wrong addresses, or collection violates statutory bankruptcy stays.
Challenging an illegal levy requires identifying transcript assessment errors, verifying notice delivery logs, and invoking administrative appeal mechanisms before the IRS remits funds.
Long-Term Options for Resolving IRS Collection Action
Securing a levy release solves the immediate emergency. Long-term resolution requires settling the underlying tax debt so enforcement actions do not resume:
Preserve statutory appeal rights when final levy notices offer formal hearing windows.
Establish a structured monthly payment plan that permanently stays levy enforcement.
Settle your complete back-tax balance for less than owed based on reasonable collection potential.
Address public NFTL filings affecting credit standing, real estate closings, and financing.
Protect operating accounts, merchant processors, and corporate receivables from levies.
Resolve Form 941 payroll tax debts and insulate management from personal TFRP exposure.
Frequently Asked Questions
Answers to common questions regarding IRS levies, wage garnishments, and emergency releases.
Get Emergency Legal Help Before the IRS Collects
Facing an active IRS bank levy or wage garnishment demands immediate legal intervention. Work directly with tax attorney Todd S. Unger to protect your bank accounts, income, and business assets.