10 Things the IRS Can and Can’t Do That Surprise Floridians Every Time

Mention the IRS at a dinner party and watch the room get quiet. The agency has a reputation for being all-powerful, but the reality is a lot more nuanced than the myth.

The IRS has real, significant authority to collect unpaid taxes.

It also has real limits on what it can and can’t do.

Understanding both sides of that line matters for every American taxpayer, and the gap between what the IRS actually does and what Floridians think it does is wider than most folks realize.

Disclaimer: The IRS’s powers and limits are governed by the Internal Revenue Code, which Congress updates regularly. This article reflects the rules as of early 2026.

Anyone dealing with an actual tax debt, audit, or levy should consult a tax professional or attorney for their specific situation. The information below is general and subject to change.

CAN: Garnish Your Wages Without a Court Order

Most creditors need to win a lawsuit before they can garnish your wages. The IRS doesn’t.

Under Internal Revenue Code § 6331, the IRS has the authority to levy wages directly once it has assessed a tax debt, sent notices, and given you 30 days to respond.

No judge required. No court judgment needed.

The IRS simply sends Form 668-W to your employer, and the employer has to comply.

CAN’T: Take Your Entire Paycheck

The IRS can take a lot, but it can’t take everything.

Under federal law, the IRS must leave you an exempt amount based on your filing status and number of dependents. The amounts are listed annually in IRS Publication 1494.

For a single filer with no dependents in 2026, the exempt amount is around $310 per week.

Anything above that exempt amount is fair game, but the IRS legally has to leave you at least that minimum.

CAN: Seize Your Bank Account

The IRS can levy your bank account with a single letter to your bank.

The bank freezes the funds for 21 days (a holding period designed to give you time to resolve the issue), then sends the money to the IRS.

Unlike wage garnishment, a bank levy is a one-time hit rather than a continuous withdrawal.

The account can still be levied again later if the debt remains unpaid, but each levy is a separate action.

CAN’T: Touch Your Supplemental Security Income (SSI)

The IRS has the authority to garnish up to 15% of Social Security retirement and disability payments through the Federal Payment Levy Program.

What the IRS can’t touch is Supplemental Security Income (SSI), children’s benefits, and death benefits.

SSI is specifically protected because it’s a need-based program designed for people with very limited income and resources.

The protection exists because SSI recipients would otherwise have no ability to meet basic living expenses if their payments got reduced.

CAN: Seize Your Retirement Accounts

The IRS can legally garnish 401(k)s, IRAs, and pension accounts to collect back taxes.

This includes both traditional and Roth retirement accounts.

In practice, the IRS usually treats retirement accounts as a last resort because of the complications involved (early withdrawal penalties, tax implications, and specific legal requirements).

But the authority exists, and in serious cases, the IRS will use it.

CAN’T: Collect After 10 Years in Most Cases

The IRS has a 10-year statute of limitations to collect assessed tax debt, governed by Internal Revenue Code § 6502.

Once that 10-year window closes, the debt becomes legally unenforceable.

Certain actions can pause or extend the 10-year clock, including bankruptcy filings, offers in compromise, and extended payment agreements.

But absent those pauses, the IRS has a hard deadline to collect, and taxpayers who wait it out can sometimes see their debts expire.

CAN: Revoke Your Passport Indirectly

Under the FAST Act of 2015 (codified in 26 U.S.C. § 7345), the IRS can certify taxpayers with “seriously delinquent” tax debts (over $66,000 in 2026, adjusted annually for inflation) to the State Department.

The State Department then has the authority to deny, revoke, or limit the taxpayer’s passport.

The IRS itself doesn’t actually revoke the passport. The State Department handles that.

But IRS certification is the trigger, and taxpayers who ignore the process can find themselves unable to travel internationally.

CAN’T: Throw You in Jail for Honest Mistakes

The IRS has criminal enforcement authority, but it’s generally reserved for cases of willful tax fraud, tax evasion, or intentional failure to file.

Making an honest mistake on a return is not a criminal offense.

Getting something wrong, owing money you didn’t know about, or missing a deduction isn’t going to send you to prison.

Criminal prosecution requires evidence of intent to deceive or defraud, and those cases are rare compared to the millions of civil tax disputes the IRS handles each year.

CAN: Audit You Generally Up to Three Years Back

The IRS generally has a three-year statute of limitations to audit a tax return, starting from the date the return was filed.

That window can extend to six years if the IRS suspects you under-reported income by more than 25%.

For cases involving fraud or unfiled returns, there’s no time limit at all.

But for ordinary returns filed honestly, the three-year window is the typical ceiling.

CAN’T: Take Certain Exempt Property

The Internal Revenue Code specifically exempts certain property from IRS levies.

This includes unemployment benefits, some workers’ compensation payments, certain pension benefits under specific conditions, child support payments, court-ordered alimony, and essential personal property up to defined dollar limits.

There are also exemptions for basic household goods, tools of the trade (for self-employed individuals), and clothing.

These exemptions exist to ensure that taxpayers, even those with significant debt, can still meet the most basic requirements of daily life.

The Line Between Power and Limits

The IRS has more collection authority than any other creditor in the United States, and the agency’s tools are significant.

At the same time, the IRS operates within a legal framework that includes real limits.

For most Americans, the IRS is a presence that shows up once a year at tax time and then disappears.

For those dealing with tax debt, understanding both the powers and the limits of the agency is essential to navigating the process.