This is a question we get all the time. Just what is exempt from a federal tax levy? The Restructuring Act of 1998 gave us a new list of exemptions. They are as follows:
Modification of Certain Levy Exemption Amounts
The Code currently prohibits the Service from seizing personal belongings of the taxpayer up to certain dollar amounts. I.R.C. § 6334. The Act increases this dollar amount as to specific items. Effective for levies issued after July 22, 1998, the date of enactment, the Code now exempts from collection (1) fuel, provisions, furniture and personal effects valued up to $6,250 (previously $2,500) and (2) books and tools of the taxpayer’s trade, business or profession valued up to $3,125 (previously $1,250). The new amounts are indexed for inflation. Act § 3431 amending I.R.C. § 6334.
This list is subject to change from time to time.
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