In the U.S., Wage Garnishment & Asset Seizure by the IRS is basically the government’s

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In the U.S., Wage Garnishment & Asset Seizure by the IRS is basically the government’s “we’ve run out of patience” stage for unpaid taxes. Here’s how it works in detail:

1. Wage Garnishment (IRS Levy on Wages)

  • The IRS contacts your employer directly, not you.
  • A part of your paycheck is automatically sent to the IRS every pay period until the debt is cleared.
  • This is not like normal debt garnishment — IRS rules allow them to take much more of your income than private creditors can.
  • They leave you only a small “exempt” amount to live on (based on family size and pay frequency).

💡 Example:
If a single person owes taxes and earns $3,000/month, the IRS might take over $2,000 of that, leaving only the exempt portion (maybe $800–$1,000).

2. Bank Account Seizure

  • Known as a bank levy.
  • The IRS freezes the bank account, takes the amount owed (or as much as is in the account), and applies it toward your tax debt.
  • You usually have 21 days from notice to try to resolve the matter before funds are removed.

3. Property Seizure

  • The IRS can seize and sell physical assets: cars, real estate, business equipment, etc.
  • They first file a Notice of Federal Tax Lien (public record) — this claims legal rights over your property until you pay.
  • If ignored, they can proceed to a tax levy and auction it off.

4. Order of Escalation

  1. IRS sends notices about unpaid taxes.
  2. “Final Notice of Intent to Levy” — gives 30 days to respond.
  3. If no resolution, garnishment or seizure begins.

If you want, I can list exactly how much the IRS is legally allowed to leave from a paycheck during garnishment — it’s surprisingly low.
Do you want me to prepare that table?

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