--- title: "Tax Troubles: Which Accounts Are Subject to an IRS Levy?" description: The IRS has the federal authority to impose a tax levy to collect outstanding tax balances. In these situations, taxpayers' and business owners' property may be up for grabs and sold at auctions to cover the back tax debt. However, the IRS does not have the authority to take everything a person owns. Here's a look at which accounts are subject to an IRS levy. image: https://www.toptaxdefenders.com/hs-fs/file-861205275-jpg/images/tax_troubles_which_accounts_are_subject_to_an_irs_levy.jpg --- [(866)866-1555](tel:866-866-1555) | [Contact](https://www.toptaxdefenders.com/contact-us) [![Top Tax Defenders](https://www.toptaxdefenders.com/hs-fs/hubfs/images/nov_15/ttd_logo_test_new.png?width=314&height=64&name=ttd_logo_test_new.png "Top Tax Defenders")](https://www.toptaxdefenders.com) # Tax Matters - The Top Tax Defenders Blog # Tax Troubles: Which Accounts Are Subject to an IRS Levy? By Top Tax Staff | Jun 20, 2014 7:00:00 AM | [IRS Collections](https://www.toptaxdefenders.com/blog/topic/irs-collections), [Tax Levies](https://www.toptaxdefenders.com/blog/topic/tax-levies) [![Share on Facebook](https://static.hubspot.com/final/img/common/icons/social/facebook-24x24.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F197974%2Ftax-troubles-which-accounts-are-subject-to-an-irs-levy%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://static.hubspot.com/final/img/common/icons/social/linkedin-24x24.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F197974%2Ftax-troubles-which-accounts-are-subject-to-an-irs-levy%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://static.hubspot.com/final/img/common/icons/social/twitter-24x24.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F197974%2Ftax-troubles-which-accounts-are-subject-to-an-irs-levy%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F197974%2Ftax-troubles-which-accounts-are-subject-to-an-irs-levy%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Tax%20Troubles%3A%20Which%20Accounts%20Are%20Subject%20to%20an%20IRS%20Levy%3F) [![Share on Pinterest](https://static.hubspot.com/final/img/common/icons/social/pinterest-24x24.png)](http://pinterest.com/pin/create/button/?url=https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F197974%2Ftax-troubles-which-accounts-are-subject-to-an-irs-levy%3Futm_medium%3Dsocial%26utm_source%3Dpinterest&media=) [![Share on Email](https://static.hubspot.com/final/img/common/icons/social/email-24x24.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F197974%2Ftax-troubles-which-accounts-are-subject-to-an-irs-levy%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fwww.toptaxdefenders.com%2Fblog%2Fbid%2F197974%2Ftax-troubles-which-accounts-are-subject-to-an-irs-levy%3Futm_medium%3Dsocial%26utm_source%3Demail) ![close up of a roll of accounting paper](https://www.toptaxdefenders.com/hs-fs/hubfs/close%20up%20of%20a%20roll%20of%20accounting%20paper.jpeg?width=1000&name=close%20up%20of%20a%20roll%20of%20accounting%20paper.jpeg) The IRS has the federal authority to impose a tax levy to collect outstanding tax balances. In these situations, taxpayers' and business owners' property may be up for grabs and sold at auctions to [cover the back tax debt](https://www.toptaxdefenders.com/blog/bid/139469/How-to-Resolve-Unfiled-Back-Taxes). However, the IRS does not have the authority to take everything a person owns. Here's a look at which accounts are subject to an IRS levy. ### [![DID YOU RECEIVE AN IRS AUDIT NOTICE? DOWNLOAD OUR FREE GUIDE ON FIGHTING AN IRS AUDIT >>](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/139062/7b6035f5-162a-44ad-8fb1-35e7a2cd3f78.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/139062/7b6035f5-162a-44ad-8fb1-35e7a2cd3f78) ### When Does the IRS Issue a Levy? A tax levy is only issued when the taxpayer has made no effort to pay an outstanding tax debt. The IRS sends several warning letters and notices before [imposing a levy](https://www.toptaxdefenders.com/blog/bid/107425/What-is-an-IRS-Tax-Levy). Generally, the taxpayer receives a "Notice and Demand for Payment", which is issued several months after the filing deadline. After some time, the IRS will send out a final notice called the "Final Notice of Intent to Levy and Notice of Your Right to a Hearing." Upon receiving this notice, a taxpayer has 30 days to either clear his or her account or contact the agency about [making an installment plan](https://www.toptaxdefenders.com/blog/bid/163109/Advantages-and-Disadvantages-of-IRS-Installment-Plans). If no action is taken, the levy will proceed. ### Which Assets are Subject to a Levy? According to the law, the IRS can levy any property in which the taxpayer has an interest. This can apply to property that the individual personally holds such as homes, vehicles and jewelry. It can also apply to property that is owed to you in the future such as retirement account funds, future wages and rental income. The only type of asset that is specifically excluded from a levy is an asset that was not owned by the taxpayer at the time. For example, if a person adds more money to a bank account after the levy is enforced, that money will not be subject to the levy. ### [![DO YOU NEED IRS TAX HELP? SCHEDULE A FREE CONSULTATION WITH OUR TAX EXPERTS »](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/139062/758dc20d-7fa2-4e2a-a2ae-b124ff4cd561.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/139062/758dc20d-7fa2-4e2a-a2ae-b124ff4cd561) ### How to Protect Your Accounts The best way to protect your accounts from an IRS levy is to never incur a tax debt at all. If you are employed, examine your withholding certificate each year to see if you should claim fewer allowances or adjust your filing status. If you work for yourself, use last year's return as a guide to [estimate your tax liability](https://www.toptaxdefenders.com/blog/bid/173482/How-to-Pay-Your-Estimated-Taxes-A-Guide). Then, divide the total by four and send it in installments to cover your quarterly estimated taxes. If you owe a balance at tax time, either pay it in full or set an installment plan right away. If you run into financial difficulties, contact the agency immediately to work out a revised plan. It's also important to take action quickly to avoid accruing interest and penalties on the balance. Even if you're able to [avoid the IRS levy](http://www.huffingtonpost.com/steve-rhode/irs-collection-activity-a_b_4275648.html), your tax bill can quickly balloon if you owe additional fees. No one wants to deal with the consequences of an IRS tax levy. If you communicate with the agency promptly and do your best to pay your tax balance on time, you may never have to worry about which of your accounts is subject to an IRS levy.   *[![New Call-to-Action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/139062/0c8c0960-2b92-4ab7-84be-b0a0a0f0977b.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/139062/0c8c0960-2b92-4ab7-84be-b0a0a0f0977b)* COMMENTS ### SUBSCRIBE VIA EMAIL ### POSTS BY TOPIC - [Tax Tips and Help (287)](https://www.toptaxdefenders.com/blog/topic/tax-tips-and-help) - [IRS Collections (121)](https://www.toptaxdefenders.com/blog/topic/irs-collections) - [IRS Audit (72)](https://www.toptaxdefenders.com/blog/topic/irs-audit) - [Tax Credits and Deductions (69)](https://www.toptaxdefenders.com/blog/topic/tax-credits-and-deductions) - [Tax Resolution (62)](https://www.toptaxdefenders.com/blog/topic/tax-resolution) - [Business Taxes (53)](https://www.toptaxdefenders.com/blog/topic/business-taxes) - [Back Taxes (51)](https://www.toptaxdefenders.com/blog/topic/back-taxes) - [Wage Garnishment (22)](https://www.toptaxdefenders.com/blog/topic/wage-garnishment) - [Tax Levies (19)](https://www.toptaxdefenders.com/blog/topic/tax-levies) - [IRS Payment Plans (15)](https://www.toptaxdefenders.com/blog/topic/irs-payment-plans) - [Tax Liens (14)](https://www.toptaxdefenders.com/blog/topic/tax-liens) - [Offer in Compromise (9)](https://www.toptaxdefenders.com/blog/topic/offer-in-compromise) - [Unfiled Tax Returns (9)](https://www.toptaxdefenders.com/blog/topic/unfiled-tax-returns) - [IRS Tax Attorneys (7)](https://www.toptaxdefenders.com/blog/topic/irs-tax-attorneys) - [Asset Seizure (6)](https://www.toptaxdefenders.com/blog/topic/asset-seizure) - [Tax Evasion (6)](https://www.toptaxdefenders.com/blog/topic/tax-evasion) - [Criminal Tax Defense (4)](https://www.toptaxdefenders.com/blog/topic/criminal-tax-defense) - [Innocent Spouse Relief (4)](https://www.toptaxdefenders.com/blog/topic/innocent-spouse-relief) [see all](https://www.toptaxdefenders.com/blog/bid/197974/tax-troubles-which-accounts-are-subject-to-an-irs-levy#) ### RECENT ARTICLES ### POPULAR ARTICLES Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum. 11222 Richmond Avenue Suite 235, Houston, TX 77082 Copyright 2026 Top Tax Defenders. 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