There are two types of levies:
1. A continuous levy (i.e. referred to as a “wage levy”) that can take earnings from wages, salaries and other income (this is the nebulous term- subject to interpretation and negotiation) until the tax is paid (on a Form 668-W for wages)
2. A one-time levy (i.e. a bank levy or an “accounts receivable” levy) that only takes the proceeds that are owed to the IRS (up to the amount of the tx due) at the time of the levy (a Form 668-A is generally used for this one-time levy).
Payors, employers and contractors constantly get these confused and send the erroneous amount to the IRS.
The main issue I see is that the IRS is starting to send business owners continuous levies when it is not appropriate. Business owners are subject only to one-time levies (which may happen often). I have had many arguments of the applicability of a Form 668-A v. 668-W.
If you have a levy, resolution of your tax problems is the only way to removing this levy. The IRS issued over 3.5 million levies last year alone and their enforcement is increasing this year. Consult professional representation for a complete resolution and release of a levy.
More to come on levies in the future.