- Bank levy is a one-time seizure of funds from a bank account to fulfill unpaid tax obligations.
- Resolving a bank levy case before funds are remitted by the bank is crucial, as it is more difficult to get funds refunded after remittance.
- Revenue Officers are typically assigned to cases with large balances, and they may resort to bank levies as a collection method.
- Consulting a professional tax firm like HTR can help prevent levies, get them released, and even recover levied funds.
- Wage garnishment is a continuous deduction of a portion of an individual's wages to satisfy unpaid taxes.
- The IRS and most states cannot garnish more than 25% of an individual's net wages.
- Social security income can only be garnished up to 15%.
- If wage garnishment exceeds the legal limits, it is a violation of the law, and taxpayers should contact the appropriate authorities immediately.
| Bank Levy | Wage Garnishment | |
|---|---|---|
| Frequency | One-time | Continuous |
| Maximum Deduction | No specific limit | 25% of net wages (varies by state) |
| Limit for Social Security Income | No specific limit | 15% |
| Actions if Violation Occurs | Contact a professional tax firm or appropriate authorities immediately | Contact the appropriate authorities immediately |
Note: It is important to consult a tax professional or contact appropriate authorities to understand the specific rules and regulations regarding bank levies and wage garnishments in your jurisdiction.
