Levies, Liens, and Wage Collection
Understand the difference between a claim against property and the taking of money or property.
Know Which Action You Have
A federal tax lien is the government’s legal claim against property. A levy takes property to collect a debt. They require different responses. A lien notice alone does not mean money has already left a bank account.
Act on a Levy Notice Promptly
Read the notice title, tax periods, and hearing instructions. LT11 and Letter 1058 announce intended levy action and explain appeal rights. Contact the IRS using the notice details and review the hearing deadline immediately.
When Money Is Already Held
Ask the bank or employer which agency issued the order and obtain the order details. IRS bank levies generally include a 21-day holding period before funds are sent. Wage levies can continue. Do not treat the holding period as permission to wait.
Hardship and Release
An IRS levy may be released if it causes immediate economic hardship or was issued in error. Prepare current income, essential expenses, bank balances, and supporting documents when requesting review. A release of a levy does not itself erase the underlying debt.
Appeal Rights
Some actions qualify for Collection Due Process or Collection Appeals Program review. These are different procedures. Follow your notice and official instructions; the opportunity to dispute the underlying tax may be limited. Keep proof of a timely submission.
When to Get Help
An active levy, imminent hearing deadline, or property transaction affected by a lien warrants prompt professional review. You can still contact the issuing agency directly while arranging help. Do not assume an online inquiry stops collection.
Official Sources
IRS: Levywww.irs.govIRS: Understanding a Federal Tax Lienwww.irs.govIRS: Understanding Your LT11 Notice or Letter 1058www.irs.govIRS: Collection Due Process FAQswww.irs.govGeneral education, not a case-specific tax or legal determination. Agency instructions and the deadlines on your own notice control. Keep sensitive records in your secure files.