Written by:
Image
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

View all posts
Updated October 16, 2020

What is a Levy?

A levy is the seizure of property in order to repay debt. In the U.S., the IRS has the authority to levy. (For everybody else, this is called foreclosure or repossession.)

How Does a Levy Work?

Let’s assume John Doe owns a house in the country and hasn't filed a tax return for five years. The IRS catches up to him and sends him a $45,000 tax bill. John has fallen on hard times lately, and is unable to pay the taxes. Accordingly, the IRS levies the house.

Levies can be on property, wages, bank accounts or anything else of value. A levy is not the same as a lien. A levy actually takes the property; a lien just places a restriction on the sale or transfer of the property.

Why Does a Levy Matter?

Taxing authorities are always anxious to get their money, but they must give written notice to a taxpayer before levying a taxpayer's assets. States also have the authority to impose levies for the lack of payment of state income taxes.

Ask an Expert about Levy
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Levy.
Be the first to ask a question

If you have a question about Levy, then please ask Paul.

Ask a question

Read this next

Don't Know a Financial Term?
Search our library of 4,000+ terms
 - profile
Ask an Expert about Levy

By submitting this form you agree with our Privacy Policy

Share
close