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IRS Wage Garnishment vs Bank Levy: What’s the Difference?
- Rona Law Firm
- 3 days ago
- 2 min read
If the IRS is taking money from you, it’s usually through either a wage garnishment or a bank levy. While both are aggressive collection actions, they work very differently—and knowing the difference can help you act quickly to protect your income and assets.
What Is an IRS Wage Garnishment?
An IRS wage garnishment (also called a wage levy) allows the IRS to take money directly from your paycheck through your employer.
Once it starts:
It continues every pay period
Your employer must comply
It can take a large portion of your income
👉 If you’re dealing with this, learn how to stop it here: wage garnishment
What Is a Bank Levy?
A bank levy is when the IRS freezes and takes money directly from your bank account.
Key differences:
It is a one-time seizure
The IRS holds funds for 21 days
You may still have time to act
👉 Learn how to release a bank levy here: bank levy
Key Differences Between Wage Garnishment and Bank Levy
Feature | Wage Garnishment | Bank Levy |
Source | Paycheck | Bank Account |
Frequency | Ongoing | One-time |
Urgency | High | Immediate |
Impact | Reduced income | Frozen funds |
Which Is Worse?
It depends on your situation.
Wage garnishment affects your future income
Bank levies affect your current cash
IRS Wage Garnishment vs Bank Levy require immediate attention.
How to Stop IRS Wage Garnishment or Bank Levy
The IRS does not stop collections on its own.
Solutions include:
Levy release (hardship)
Installment agreements
Currently Not Collectible
Offer in Compromise
Time Is Critical
Delaying can cost thousands.
The sooner you act, the more options you have.
Speak With a Tax Attorney Today
📞 Call (818) 964-1829 to speak directly with a tax attorney today.
Stop IRS collections before they get worse.
Call now or schedule a free consultation.
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