If an individual doesn’t pay a tax debt, an IRS levy permits the legal seizure of his or her property. The IRS can garnish wages, take money in a bank account and seize vehicles, real estate and other personal property. In one case, a credit union surrendered the contents of a man’s account to the IRS to pay a tax debt. In a U.S. District Court, the man argued that the levy “was wrongful because he is not obligated to pay federal income taxes.” The credit union responded that it had a mandatory obligation to comply with the IRS Notice of Levy. The court ruled that the credit union complied with the law and a U.S. Court of Appeals agreed. (Nicholson, CA 4, 2/28/22)
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