Levy Definition

The legal seizure and sale of the property owned by an individual by the Internal Revenue Service (IRS) to recover tax debt is known as a levy.

Levy Extended Definition
If a person fails to pay federal taxes, the IRS can legally seize and sell the defaulter’s property. This is the strongest weapon at the IRS’ disposal for recovering delinquent taxes.

A levy is used as a last resort in case a defaulter refuses to pay, doesn’t get tax levy help, and neglects the final levy notice, which is issued 30 days prior to the levy.

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Last Updated By

Rachel Blakely-Gray | Apr 28, 2023

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