Will a Levy Against Me Affect My Husband's Wages?
- The IRS issues two types of levies; a bank levy or a wage levy. A bank levy attaches only to funds in your bank account at the time the levy is served upon your bank. Your bank may not hold future deposits to satisfy the amount you owe. The day after a levy attaches to your bank account, you may use your account as you normally would. Wage garnishments are served upon your employer. Wage levies are continuous which means your employer must garnish each of your paychecks until your balance is paid or the levy is released. The IRS must serve levies upon different banks and employers separately. For example, a levy sent to one bank does not attach to an account you have at another bank. Bank levies do not affect wages and wage levies do not affect bank accounts.
- If you generate a tax balance on a tax return you file separately from your husband, in most cases your balance is not connected to your husband. This means if the IRS issues a levy against you, it may not attach to assets that are solely your husband's, including his paycheck. However, if you have joint bank accounts, all funds in an account associated with your Social Security number may be subject to levy. Joint tax liabilities are equally subject to levy action, although the IRS does not always issue levies simultaneously. For example, you may receive a wage levy but your spouse may not. This may be the result of the IRS not knowing where your husband works.
- Community property states may find either spouse equally liable to repay tax debts, regardless of whether the liability accrues separately or jointly. In some cases, community property rules apply to liabilities that accrue before you and your spouse marry. In these states, your husband's wages may be subject to levy even if he is not otherwise responsible for the tax debt accumulating. Community property states include California, Arizona, Nevada, Texas, Louisiana, Idaho, New Mexico, Washington and Wisconsin.
- If you receive a levy from the IRS, it is possible to get the levy released. Bank levies are released when the IRS issues the levy erroneously or if the levy causes significant hardship. The IRS requires a notice of eviction or foreclosure, or a utility disconnect notice as evidence of financial hardship. If you present either of these documents, the IRS may release funds up to the amount owed on your eviction or disconnect notice. You have 21 days from the date a bank levy is served to obtain a release. Wage levies are a little easier to get released. Because wage levies are continuous, the IRS recognizes that the levy causes a financial burden. If you establish another method to resolve your liability, such as an Installment agreement, the IRS will release your wage garnishment. To inquire about getting a bank or wage levy released, call the IRS at 800-829-1040 and ask to speak with the collections department. If your case is handled by a local IRS agent, contact the agent directly.
