Tax Levy

Full Definition

A tax levy is the IRS's legal authority to seize and sell your property to satisfy a tax debt. Unlike a lien (which is a claim), a levy actually takes the property. The IRS can levy bank accounts, wages, Social Security benefits, retirement income, and other assets. Before levying, the IRS must send several notices and provide an opportunity to pay or make arrangements. You have the right to appeal a levy through a Collection Due Process hearing.