IRS Is Threatening a Levy or Garnishment? What to Do Before Your Paycheck or Bank Account Is Taken

Rona Law Firm
11 minutes ago
2 min read

If you’ve received a notice warning of a bank levy, wage garnishment, or asset seizure, time is critical. Many taxpayers don’t realize the IRS can legally drain bank accounts, garnish wages, and seize property without going to court—and once it happens, the damage is often immediate. As a tax resolution attorney, I help individuals and business owners stop IRS enforcement actions and resolve overwhelming tax debt before it spirals out of control.

What Is an IRS Levy or Garnishment?

An IRS levy allows the Internal Revenue Service to:

Freeze and seize bank accounts
Garnish wages or contractor income
Take retirement funds in certain cases
Seize vehicles, real estate, or business assets

Unlike other creditors, the IRS does not need a court judgment to take these actions.

Common IRS Notices That Signal Imminent Enforcement

If you’ve received any of the following, you may be days or weeks away from a levy or garnishment:

Final Notice of Intent to Levy (LT11 or Letter 1058)
CP90 or CP297
Wage garnishment warning letters
Bank levy notices

Ignoring these notices is one of the most costly mistakes taxpayers make.

Why the IRS Targets Some Taxpayers Faster Than Others

The IRS prioritizes enforcement when:

Tax returns are unfiled
No response has been made to prior notices
The balance owed is substantial
The taxpayer appears collectible
There is no active resolution strategy in place

Once your case enters collections, it can escalate quickly.

How a Tax Resolution Attorney Can Stop IRS Threatening Levy

The right legal strategy can often halt IRS enforcement immediately.

Depending on your situation, solutions may include:

Collection holds to stop levies and garnishments
Offer in Compromise (OIC) to settle tax debt for less
Currently Not Collectible (CNC) status
Penalty abatement
Installment agreements
Lien releases or withdrawals

Each case requires careful analysis—what works for one taxpayer can hurt another.

Why Acting Early Matters

Once the IRS levies:

Bank funds may be gone permanently
Employers must continue garnishing wages
Credit damage can worsen
Resolution options may become more limited

Taking action before enforcement begins preserves leverage and increases the likelihood of a favorable outcome.

Why You Shouldn’t Handle IRS Collections Alone

IRS collection cases involve:

Complex financial disclosures
Strict deadlines
Strategic sequencing of filings
Negotiation with Revenue Officers or ACS

One misstep—such as submitting the wrong form or overstating ability to pay—can result in denial of relief or increased enforcement.

Speak With a Tax Resolution Attorney Before It’s Too Late

If the IRS is threatening to levy your bank account, garnish your wages, or seize assets, you may still have options—but time is not on your side.

📞 Call 818.964.1829 today for a free confidential consultation. Let’s stop IRS action, protect your income, and work toward a resolution that fits your financial reality.