Can the IRS Levy You If You Only Owe $1,000?
In short, yes.
In order for the IRS to levy your wages or bank accounts to pay a tax liability they must give your written notice of their Intent to Levy by either personally delivering it to you, leaving it at your home, or sending it by certified mail to your last known address. Practically speaking, 99% of my clients receive their levy notice by certified mail.
This notice must be given at least 30 days prior to any seizure by the IRS. And the letter must give you notice of the tax periods the IRS is trying to collect for and an explanation of the levy process, your collection alternatives, and your right to an appeal.
Since you have an opportunity to appeal, this can help give you a little more time to get things together and work out a settlement with the IRS for your tax liability. As you can see, the amount you owe the IRS is not a factor in whether they can levy against you or not.