It's normal to have tax questions when you owe money to the Internal Revenue Service. What's an IRS seizure? What should I do when the IRS says they're going to execute a federal levy? Below, we will answer all of the most common tax questions, as well as how to steer clear of a federal levy or an IRS seizure. These tax questions' solutions might not be easy to execute, but you must try to resolve your debt to avert an IRS levy or an IRS seizure.

Tax Questions: The Different Kinds of Tax Levy

Until the Internal Revenue Service advises of an approaching tax levy, many individuals are okay with their tax questions continuing to go unanswered. A tax levy is the IRS' most powerful way of collecting debt. Essentially, a tax levy is the IRS collecting your tax debt by forcing your payment. There are various ways the IRS goes about doing this, which we're going to be going over. The toughest part of an IRS levy is that they are unpredictable. Taxpayers that had no idea they owed the IRS might all of a sudden be slapped with a tax levy without much warning. An IRS Seizure, which we will go over later, is an extreme type of IRS levy.

Tax Levy #1: The Bank Levy

Many tax questions are raised when a levy on your bank account is enforced. In a nut shell, the Internal Revenue Service uses the bank levy to seize all of the cash from your bank account to apply it toward your debt. Below, we address the most frequently asked tax questions regarding bank levy:

Question #1: Is the IRS allowed to take money from my bank account for good?

If you fail to adhere to their rules and act quickly to handle the levy, the IRS will legally seize the funds from your bank account permanently.

Question #2: How can I stop a tax levy from allowing the Internal Revenue Service to take my money for good?

You need to must take action the moment you are given the Internal Revenue Service's "Notice of Intent to Levy" if you want prevent a government confiscation of all the funds from your bank account. You have a mere 21 days!

Tax Levy #2: The Wage Levy

The Internal Revenue Service uses the wage levy to seize money directly out of your earnings. A bank levy is a one-time shot, but a levy on your wages is continuous. Until the money you still haven't paid is paid in full, the IRS can confiscate money from your wages.

• When a tax levy is in place, how much is the IRS permitted to claim from my income?

Whatever your monthly bills, the IRS will however much they think is "reasonable".

• How can I prevent the Internal Revenue Service from taking part of my income when they execute the IRS levy?

The IRS, by law, has to leave enough funds for you to cover your day-to-day essentials, including groceries, heat, and work transportation. You definitely have a strong case for having the federal tax levy lifted if you're unable to afford these expenses.

IRS Seizure Tax Question

The good news is that the IRS seizure won't happen for most. An IRS seizure is only used in extreme situations where a substantial amount is outstanding, and the taxpayer has plenty of possessions able to be claimed and resold with the income applied toward the back tax debt.