What happens when you get a tax levy is the IRS can take hold of your personal or business properties and sell them through auction to pay for your tax debt. When the IRS sends a notice for a bank levy, your bank will freeze your financial resources and send the money directly to the IRS. With a wage levy, your employer will send the IRS part of your wages each pay period.
If there is an IRS tax levy on your bank account or wages, it may be appealed if it is causing economic hardship. Employers generally have one full pay period cycle after receiving the Notice of Levy on Wages, Salary and Other Income before they are required to send funds to the IRS, thus allowing some time to correct the problem. Even if you are being levied, you may still have options.