What is the difference between a Wage Levy and a Bank Levy?
A Wage Levy requires your employer to take a deduction from every paycheck until your delinquent taxes have been paid. The IRS is allowed to take most of your pay and leave you very little to live on. A Bank Levy is a one time freeze on your bank account balance(s) for 21 days, after which the bank is required to send the IRS whatever was in your account on the day they received the Levy, unless you have gotten the IRS to remove the Levy. Any money put into your account after the Levy is still available to you, but usually all the checks that had not cleared before the Levy will bounce due to insufficient funds. In order to take any new funds you have put into your account the IRS would have to issue another Bank Levy. You are much better off making a voluntary payment arrangement with the IRS, instead of waiting for them to initiate either type of Levy.
