An IRS levy is a tactic used to collect delinquent taxes or to get the attention of taxpayers who have past due returns. They levy can result in your wages being garnished or money being taken directly from your bank account or assets being seized and sold. The levy is used on both individual and business tax debt collection accounts. The levy is often imposed by the IRS after their collection letters are ignored and no effort is made to make reasonable payments in relation to the size of the debt. Unfortunately at this point the IRS really doesn't care if you or your business is left short of enough money to pay bills. That is why it is so important to work with the IRS as soon as you realize you will be unable to pay a tax debt. An installment agreement establishes a payment schedule that leaves you with enough net cash to pay essential expenses. A levy can take up to 90 percent of a bank account balance or a pay check. It is possible to dispute a levy as long as all the tax returns that are due have been filed.