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Can a levy against my wages rec'd from the IRS in 1999, still be in effect today. large sett'lm ck put in bk todaycan IRS get it

Cordova, TN |

If I put the settlement check I rec'd today from an auto accident in my bank a/c, can the IRS , after almost 14 years look at my bank a/c and legally force me to pay this levy from 1999? Thank you,

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Attorney answers 3


Usually, the IRS has a 10 year statute of limitations on collection. Retain a tax lawyer right away to review your matter.

Good luck!

Ron Cappuccio

If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.


The previous Attorney is correct that, normally, IRS has 10 years to collect the debt from the date the tax is assessed. But, let me go further. Your question is actually two questions as you mention both a bank levy and a levy against wages. And, I am writing this so that others who may have the same issue can understand. A levy against wages is also known as a garnishment. It is a continuing seizure of your income so long as you work at that particular job and still owe money to the IRS. On the other hand, a levy on a bank account is, normally, a one time notice for the bank to turn over to the IRS what it is holding in the account at that specific moment in time and does not continue beyond that point. Finally, if you still owe money to the IRS and the statute of limitations on collection has not expired (sometimes the 10 year statute is extended ....such as bankruptcy, offers in compromises and collection due process hearings), then the IRS could do another bank levy to collect. The easiest manner to determine the status of your 1999 debt, and to do so quietly, is to engage a tax practitioner to download a transcript through E-Services.

Finally, you should note that even though your settlement check is from an automobile accident, some or part of it may be taxable to federal and/or state governments. You should consult with a tax advisor on that issue.

Marty Davidoff,, 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.


Your bank received an asset levy in 1999. That was effective only for funds that were in the account at that time. Your personal liability for the tax probably has expired due to the statute of limitations on collection of tax. The statute of limitations expires 10 years from assessment generally. It can be extented due to a number of actions including but not limited to bankruptcy, an extension agreement under an installment agreement and an offer in compromise. These are the most common. There is a good probability that you have no liability at this time.

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