When taxpayers fall behind on federal tax debt, one of the most feared enforcement tools is the IRS levy, the legal seizure of your wages, bank accounts, or property. Unlike most creditors, the IRS operates with “super-creditor” powers, meaning it generally does not need a court judgment to take assets. Their authority stems directly from federal statute.
However Congress built safeguards into the law to ensure taxpayers are not stripped of basic living necessities. These protections are codified primarily under Internal Revenue Code § 6334, which outlines property exempt from levy.
Understanding IRS Levy Authority
Before diving into exemptions, it’s important to understand the scope of IRS power.
Under IRC § 6331, the IRS may levy property if:
- You owe federal tax debt
- You received a Notice and Demand for Payment
- You neglected or refused to pay
- You were issued a Final Notice of Intent to Levy (LT11 or Letter 1058)
Once this process is complete, the IRS can seize:
- Bank accounts
- Wages (continuous levy)
- Social Security (partial)
- Business receivables
- Vehicles
- Real estate (with court approval)
But federal law draws a line at essential property.
Items the IRS Cannot Touch (IRC § 6334)
1. Necessary Clothing & School Books
The IRS cannot levy:
- Everyday clothing
- Winter coats
- Children’s school uniforms
- Required textbooks
This exemption ensures families are not deprived of basic human necessities or educational access.
Authority: IRC § 6334(a)(1)
2. Fuel, Furniture & Personal Effects
2026 Inflation-Adjusted Protection: Up to $6,250
Protected household items include:
- Beds and bedding
- Couches and chairs
- Kitchen tables
- Refrigerators
- Stoves
- Home heating fuel
The exemption is capped at an inflation-adjusted amount, projected around $6,250 for 2026.
If household goods exceed this value, the IRS may seize non-essential luxury items such as:
- High-end art
- Collectibles
- Designer furniture
Authority: IRC § 6334(a)(2)
3. Tools of the Trade
2026 Protection: Up to $3,125
To prevent taxpayers from losing their livelihood, the IRS cannot seize tools necessary to earn income.
Examples include:
- Mechanic toolsets
- Contractor equipment
- Professional instruments
- Computers used for business
- Trade machinery
The 2026 inflation-adjusted exemption is estimated at $3,125.
If tools exceed the cap, the IRS may seize surplus or luxury equipment — but not what is reasonably necessary to work.
Authority: IRC § 6334(a)(3)
4. Unemployment Benefits
Unemployment compensation is fully exempt from IRS levy.
This protection recognizes the financial hardship inherent in job loss.
Authority: IRC § 6334(a)(4)
5. Workers’ Compensation
Benefits paid due to workplace injury or disability cannot be levied.
These funds are considered essential for medical care and recovery.
Authority: IRC § 6334(a)(7)
6. Court-Ordered Child Support Payments
Child support payments are protected because they are legally owed to a dependent — not the taxpayer.
Even if funds pass through the taxpayer’s account, properly traceable child support remains exempt.
Authority: IRC § 6334(a)(8)
7. Certain Public Assistance Payments
Additional protected benefits include:
- Supplemental Security Income (SSI)
- Temporary Assistance for Needy Families (TANF)
- State welfare assistance
Note: Social Security retirement is not fully exempt — it can be levied up to 15% under the Federal Payment Levy Program (FPLP).
Authority: IRC § 6334(a)(11)
8. Undelivered Mail
The IRS cannot intercept or seize mail before delivery.
This includes:
- Checks
- Legal correspondence
- Financial statements
Once funds are deposited into a bank account, however, they may become subject to levy.
Authority: IRC § 6334(a)(10)
Citations & Authority
- Internal Revenue Code § 6334 — Property Exempt from Levy
- Internal Revenue Code § 6331 — Levy Authority
- Internal Revenue Code § 6334(e) — Principal Residence Seizure Rules
- Internal Revenue Manual 5.11.1.3.1 — Property Exempt from Levy
- IRM 5.10.1 — Seizure and Sale Procedures
- IRS Publication 1494 — Levy Exemption Tables (Inflation Adjusted)
