Florida residents who have been through a debt collection lawsuit know the steps. The creditor sues. You get served. There is a judgment. Then the creditor asks the clerk for a writ of garnishment, the bank gets served, and you get a notice that tells you how to claim your exemptions. It is slow, and it has several places where a judge can step in.
So when the IRS freezes a Tampa taxpayer’s bank account with no lawsuit, no judge and no exemption form, people assume something illegal happened. It almost never did. The IRS simply operates under a different system. Here is the comparison.
How a Florida creditor collects
Garnishment in Florida is governed by Chapter 77 of the Florida Statutes. The general sequence for a private creditor:
- A lawsuit and a judgment. A creditor generally needs a final judgment before post-judgment garnishment. Pre-judgment garnishment exists but is limited and requires a bond.
- A writ of garnishment. The creditor applies to the court, and the clerk issues a writ directed to the garnishee, such as a bank or employer.
- Notice to the debtor. Under Fla. Stat. 77.041, when the defendant is an individual, the clerk attaches a Notice to Defendant explaining that wages, money and other property may be exempt, with a form for Claim of Exemption and Request for Hearing.
- Claim of exemption. The notice tells the debtor to file the notarized claim within 20 days after receiving the notice, and to serve copies on the creditor and the garnishee. The creditor then has a short period to object, and if it does not, the funds are released.
- Exemptions. The debtor can claim Florida exemptions such as head-of-family wages under Fla. Stat. 222.11, retirement funds under 222.21, and others, plus federal exemptions for things like Social Security benefits.
Every step involves the court. That is the Florida model.
How the IRS collects
The IRS works under the Internal Revenue Code, and its levy power is administrative. The sequence:
- Assessment. The tax is recorded on the IRS’s books, either from your return or after an examination or other process.
- Notice and demand. Under IRC 6303, the IRS sends notice of the amount and demands payment. Under IRC 6321, if you do not pay, the lien arises.
- Final notice of intent to levy. IRC 6331(d) requires notice at least 30 days before levy. IRC 6330 requires a notice of your right to a Collection Due Process hearing at least 30 days before the first levy for that tax. These are usually combined in one letter, such as LT11 or Letter 1058.
- Levy. After the 30 days, the IRS can serve a levy on your bank (Form 668-A) or employer (Form 668-W). No court is involved.
- Bank hold. Under IRC 6332(c), a bank must hold levied funds for 21 days before paying the IRS.
The IRS does not need a judgment because the assessment functions like one. Congress gave the IRS that power directly, and the Supreme Court has long upheld it.
Side by side
| Florida judgment creditor | IRS | |
|---|---|---|
| Legal authority | Fla. Stat. Chapter 77 | IRC 6331 and 6332 |
| Lawsuit and judgment needed? | Yes, in most cases | No |
| Who issues the order? | Clerk of court, on a writ | The IRS itself, on Form 668-A or 668-W |
| Advance notice | Lawsuit, then notice with the writ | Final notice and CDP notice at least 30 days before levy |
| Main pre-collection challenge | Defend the lawsuit | Collection Due Process hearing under IRC 6330 |
| Exemptions | Florida and federal exemptions via claim of exemption | Only IRC 6334(a) exemptions |
| Bank funds held | Per Chapter 77 procedure | 21 days under IRC 6332(c) |
| Wages | Head-of-family exemption, 222.11 | Continuous levy; Publication 1494 exempt amount |
| Entireties accounts, one spouse owes | Generally protected | Reachable after United States v. Craft |
Why Florida exemptions do not show up in IRS cases
IRC 6334(c) says no property is exempt from IRS levy except what IRC 6334(a) lists. Treas. Reg. 301.6334-1(c) adds that no state law may exempt property from levy for the collection of any federal tax. That knocks out Florida’s head-of-family wage exemption, its retirement account and annuity protections, and the rest of Chapter 222. My guides on the head-of-family exemption and Florida exemptions versus IRS levies cover the details.
It also changes the analysis for married couples. A Florida creditor of one spouse usually cannot touch an entireties bank account. The IRS can levy cash held as entireties property in appropriate cases, under its guidance following United States v. Craft. See one spouse owes the IRS: entireties accounts.
Your federal tools against a levy
Since Florida’s garnishment defenses do not apply, these are the tools that do:
- Collection Due Process hearing. Request it on Form 12153 within 30 days of the CDP notice. Levy is generally suspended while the hearing is pending, and an Appeals officer considers collection alternatives. This is the single best opportunity to get ahead of a levy.
- Equivalent hearing. If you miss the 30 days, you can request an equivalent hearing within one year, but levy is not suspended.
- Collection Appeals Program. A faster administrative appeal of a proposed or completed levy.
- Levy release under IRC 6343. Required for economic hardship, an installment agreement, full payment, and other listed reasons.
- Return of wrongfully levied property. A third party, such as a non-liable spouse, can request return under IRC 6343(b) or sue under IRC 7426.
A Tampa illustration
Here is a composite of a situation that comes up regularly. A Riverview nurse who supports two children has a medical-bill judgment against her from a few years back and also owes the IRS from a year when she worked as an independent contractor.
The medical creditor serves a writ of garnishment on her credit union. She receives the Notice to Defendant under 77.041, files a notarized claim of exemption within 20 days showing the account holds her traceable head-of-family wages, and the funds are released when the creditor does not successfully object. Florida law worked exactly as intended.
The same month, the IRS serves a Form 668-A on the same credit union. There is no writ, no clerk and no exemption form. The credit union holds the funds for 21 days under IRC 6332(c) and then sends them to the IRS. Her Florida exemption claim does nothing, because IRC 6334(c) does not recognize it.
What would have helped was the certified letter she received months earlier offering a Collection Due Process hearing. A timely request would have suspended levy action while she proposed a payment plan. After the levy, her options are a hardship release or a quick agreement, and the clock is short.
The real lesson: notices are not junk mail
The biggest difference between the systems is where the warnings are. In a Florida lawsuit, the warning is a process server at your door. In an IRS case, the warnings are letters, and the most important one, the CDP notice, comes by certified mail and starts a 30-day clock. People who toss IRS letters unopened lose the one hearing that would have stopped the levy before it happened. My guide on IRS bank levies in Tampa covers what to do if the levy has already hit.
GetIRSHelp.com has more on IRS levies.
Florida makes creditors go to court. The IRS already went to Congress. Read the mail.