Can the IRS garnish my entire paycheck?

The IRS cannot legally take your entire paycheck, but it can garnish everything above the protected exempt amount determined by federal wage levy tables. That exempt amount is often much lower than most people expect and does not reflect real living costs. As a result, many taxpayers feel like nearly their entire paycheck is being taken, even though a small portion must legally remain protected.

Is a wage levy the same as wage garnishment?

Yes. A wage levy is the IRS's legal term for wage garnishment. Outside of tax law, most people use the term wage garnishment, while the IRS uses levy. Both describe the same action: the IRS requiring an employer to withhold wages and send them directly to the government to satisfy an unpaid federal tax debt.

How fast can an IRS wage garnishment begin?

Once the IRS issues a Final Notice of Intent to Levy (such as Letter 1058 or LT11) and the required response period has expired, wage garnishment can begin promptly. In many cases, withholding starts with the next pay cycle after your employer receives the levy notice. There is often little warning once that point is reached.

Will my employer be notified about the garnishment?

Yes. IRS wage garnishment is enforced by sending a levy notice directly to your employer. Employers are legally required to comply with IRS instructions and withhold wages accordingly. While employers are not told personal details about your tax situation, they will know that a federal wage levy is in place and must continue withholding until the IRS releases it.

Does this calculator include state garnishments or other withholdings?

No. This calculator estimates only the federal IRS wage garnishment. It does not include state tax levies, garnishments by creditors, child support, alimony, or other payroll deductions. Actual take-home pay may be lower if additional withholdings apply, but the calculator focuses solely on how the IRS calculates federal wage levy exemptions.

What if I have more than one job?

The IRS can issue wage levies to multiple employers simultaneously. Each employer may be required to withhold wages based on IRS instructions. This can significantly increase financial strain, especially if the protected exempt amount is applied separately. Understanding this risk early can help taxpayers assess urgency and potential resolution options.

Is this calculator a substitute for professional advice?

No. This calculator is a decision-support tool, not legal or tax advice. It provides estimates based on published IRS wage levy rules and exemption tables. Actual outcomes depend on IRS enforcement status, compliance history, and financial disclosures. Reviewing results with a qualified tax professional or tax resolution specialist can help clarify realistic next steps.

IRS Business Bank Levy Calculator

See If the IRS Can Freeze or Seize Your Business Bank Account — Before Payroll Bounces

If the IRS issues a levy against your business bank account, operations can stop immediately. A business bank levy is an active enforcement action—not a warning—and allows the IRS to freeze the account, hold the funds for 21 days, and then seize the entire balance under federal law. This can cause payroll failures, bounced vendor payments, loan or rent defaults, shutdowns by merchant processors, and major disruption to cash flow, without the IRS evaluating whether the business can continue operating.

What an IRS Business Bank Levy Actually Does

An IRS business bank levy is a legal seizure that allows the IRS to freeze and take funds from a business bank account after required notices are issued. Once the levy is sent directly to the bank, the account is immediately frozen, blocking payroll, ACH transfers, checks, and outgoing payments during a 21-day hold period with no exempt amount for operating funds. If the levy is not released, the bank transfers the entire frozen balance to the IRS, where it is permanently applied to the tax debt.

Why Business Bank Levies Are More Dangerous

Business bank levies move faster and are harder to reverse than wage garnishment or individual levies.

The IRS treats unpaid payroll taxes as trust fund money

Operating accounts contain liquid cash that can be seized immediately

Revenue officers can issue multiple levies across institutions

Personal liability may follow through the Trust Fund Recovery Penalty

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Common Triggers That Put Business Accounts at Levy Risk

Levy risk is active if any of the following apply:

Unpaid or unfiled payroll taxes

Multiple quarters of tax debt

Prior defaults or compliance issues

Active IRS enforcement or financial review

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Warning Signs a Business Bank Levy Is Imminent

Most businesses do not realize enforcement has escalated until their accounts are frozen. Common warning signs include the following:

A Final Notice of Intent to Levy received within the last 60 days

Revenue officer phone calls or in-person visits

Requests for financial statements

Payroll deposits are falling behind while older balances remain unpaid

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How Business Bank Levies Can Be Stopped or Released

There is no universal solution. Strategy depends on timing, compliance, and financial facts.

Immediate risk and deadline assessment

Power of attorney and IRS contact takeover

Levy release or prevention strategy

Compliance lockdown and long-term resolution

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Use the Calculator — Then Act

The calculator shows risk. It does not stop the IRS.If your result shows moderate or high risk, delay reduces available options.If your results show meaningful wage garnishment exposure, delaying action usually benefits the IRS — not you.

Call now to review your business bank levy exposure, or request a confidential review.Confidential • No obligation • Nothing sent to the IRS

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IRS Business Bank Levy Calculator

Business Bank Levy Risk Calculator

Answer a few questions about:

Your results will indicate one of three outcomes:

Step 1 — Immediate Impact

Step 2 — IRS Situation

Step 3 — Compliance

Step 4 — Cash Buffer

Not eligible

Your IRS Bank Levy Business Result

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What You Entered

What an IRS Business Bank Levy Actually Does

Why Business Bank Levies Are More Dangerous

Common Triggers That Put Business Accounts at Levy Risk

Warning Signs a Business Bank Levy Is Imminent

How Business Bank Levies Can Be Stopped or Released

Use the Calculator — Then Act

Frequently Asked Questions (FAQs)

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IRS Business Bank Levy Calculator

Business Bank Levy Risk Calculator

Answer a few questions about:

Your results will indicate one of three outcomes:

Step 1 — Immediate Impact

Step 2 — IRS Situation

Step 3 — Compliance

Step 4 — Cash Buffer

Not eligible

Your IRS Bank Levy Business Result

-

What You Entered

What an IRS Business Bank Levy Actually Does

Why Business Bank Levies Are More Dangerous

Common Triggers That Put Business Accounts at Levy Risk

Warning Signs a Business Bank Levy Is Imminent

How Business Bank Levies Can Be Stopped or Released

Use the Calculator — Then Act

Frequently Asked Questions (FAQs)

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