Levy On Third Parties

As part of its enforcement procedures, the IRS may levy on assets or income of the taxpayer that is held or owed by third parties, such as banks, employers, clients of the taxpayer, etc. This is one of the most common and frequent actions by the IRS against delinquent taxpayers who have not otherwise worked out payment arrangements. (See and extensive discussion on this procedure in Levies on Third Parties elsewhere on this Web site) The Internal Revenue Service Restructuring and Reform Act of 1998 has placed some additional due process restrictions on this procedure, although the essential power to levy on the assets of the taxpayer remains intact.