Continuing Levies and Successive Seizures

By: Tyler B. Korn, Esq.

Under the Internal Revenue Code and specifically under Treasury Regulations Section 301.6331-1, the Internal Revenue Service has broad authority to make continuing levies and successive seizures on recurring and periodic forms of compensation. A levy on salary or wages has continuous effect from the time that the levy is originally made until the levy is released.

“Salary or wages,” for these purposes, generally includes compensation for services paid in the form of fees, commissions, bonuses and similar items. The levy is deemed to attach to both salary or wages earned but not yet paid at the time of levy, advances on salary or wages made subsequent to the date of the levy, and salary or wages earned and becoming payable subsequent to the date of levy, until the levy is released.

Similarly, whenever any property or rights to property upon which a levy has been made are not sufficient to satisfy the federal tax lien for which the levy is made, the Internal Revenue Service is authorized to thereafter, as often as it may deem necessary, proceed to levy on any other property or rights to property that is subject to levy.

Dispute often arises as to whether a particular form of compensation is subject to continuing levy, and as to whether a particular type of property or property right is subject to successive seizure.

If you are subject to a continuing levy or successive seizure order and have questions about its validity or enforceability, please feel free to call our office.

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