[2] While the government relies mainly on voluntary payment of tax, it retains the power of levy to collect involuntarily from those who persistently refuse to pay.
According to the U.S. Supreme Court, the power of administrative levy for federal taxes dates back to the year 1791.
[3] The Fifth Amendment of the Constitution forbids the government (whether state or federal) from taking an individual's property without due process of law.
The notice will include the IRS Form 12153 which the taxpayer can fill out and mail in to request a hearing.
Upon being given notice of levy, the bank must preserve that property until it is turned over to the IRS or run the risk of paying the depositor's tax bill pursuant to 26 U.S.C.
In order to take a principal residence, the IRS must go to court and seek the permission of a federal magistrate to levy a house in which the taxpayer lives.
However, under no circumstances can the IRS levy on a personal residence if the total amount owed is equal to or less than $5000.
So as future wages are earned, no additional levy action is necessary by the IRS to take a large portion from them.
If the offer is missing documents or forms, however, the IRS can return the paperwork to the debtor as un-processable, and can then levy or garnish her property.
Internal Revenue Code section 6015(e)(1)(B) prohibits the IRS from levying taxpayers who have a pending claim for innocent spouse relief.