Glossary → Tax & IRS
Tax & IRS

Tax Levy

The IRS legally seizing property or funds to collect unpaid tax.

A levy is the IRS actually taking your property — bank funds, wages, or other assets — to satisfy a tax debt. It comes after notices go unanswered, and a Final Notice of Intent to Levy triggers your right to a hearing.

In practice

“Final Notice of Intent to Levy and Notice of Your Right to a Hearing.”

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Levy versus lien, and your window to act

A lien is a claim on your property; a levy is the seizure. The Final Notice (often a CP504 or LT11) starts a 30-day clock to request a Collection Due Process hearing — the key deadline. Payment plans, an offer in compromise, or currently-not-collectible status can stop a levy.

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What it looks like in a real document

“You have 30 days from the date of this notice to request a hearing.”

That 30-day window is the most important part — requesting a hearing in time pauses the levy and preserves your appeal rights.