Levies can really do a lot of damage and even ruin your life. A levy by the IRS's is one way they have of getting your immediate attention. An IRS levy is a typical result if they have tried to communicate with you but you have ignored that communication. Levies are used to seize your wages and whatever other assets you have. The IRS can use a levy to get your checking accounts, auto's, stocks, bonds, boats, paychecks, and even Social Security checks!
An IRS levy can be brutal. Imagine waking up one morning and finding all your bank accounts have been cleaned out. If the amount the IRS took did not cover what is owed, they'll keep taking your money until you cover your tax liability. An IRS levy that resulting in taking your bank account will cause checks to bounce, alerting many people that you have tax problems. The IRS's objective in placing the levy and taking your assets is to collect the taxes owed. Period.
As bad as that is, a worse method is a wage levy (or garnishment). That's when most of your pay check goes to the IRS. A wage garnishment could leave you without enough to pay the bills, including most of your paycheck going to the IRS each and every week until the debt is paid.
If that doesn't payoff the IRS debt, they'll pull out all the stops. They can seize your assets, and sell them at auction...your home, cars, boats, jewelry, motorcycles, insurance polices, retirement funds, anything of value.
