This video explains what a Bank Levy is and how it can effect you.
The IRS is one of the most powerful collection agencies on the planet. They can do a lot of things that typically other creditors can’t do. For example, they can go into your bank and take all of the money out of your bank account. They can also go to your employer and say don’t pay you, pay us.
How do they do this? They serve a levy on your bank account and you have a 21 day period to get the levy released. If the levy isn’t released within the 21 day period, the bank will send the money to the IRS. It works the same with your employer. If the IRS serves a levy on your employer, they must send all of your income minus your deductions or withholding exemptions, and they have to send all of your pay to the IRS.
The IRS can also cease things including your car and home. Most people think of the IRS ceasing your home as they drag you out in the street in the middle of the night which really doesn’t happen. They can however take steps where they can legally sell your home to pay for your IRS matters.