--- title: "Tax levy: Definition and Sources | Tax Glossary" description: "A tax levy is the legal seizure of property, such as wages or bank funds, to pay a tax debt; it differs from a lien, which is only a claim." url: https://wallacecpa.multisites.ai/glossary/tax-levy publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- IRS notices # Tax levy A tax levy is the legal seizure of property, such as wages or bank funds, to pay a tax debt; it differs from a lien, which is only a claim. A levy takes action on your property. The IRS says it permits the legal seizure of property to satisfy a tax debt. That can mean garnished wages, money taken from a bank account, or a sale of a vehicle or real estate. People often confuse a levy with a [tax lien](https://wallacecpa.multisites.ai/glossary/tax-lien). A lien is the claim. A levy is the taking. The IRS usually sends a Final Notice of Intent to Levy first, and that notice has a response window. Acting early can open doors such as an [installment agreement](https://wallacecpa.multisites.ai/glossary/installment-agreement). See the [IRS problems page](https://wallacecpa.multisites.ai/services/irs-problems#liens-and-levies) for how a CPA can help with the response. [Wallace CPA can helpIRS problem resolution](https://wallacecpa.multisites.ai/services/irs-problems) ## Related terms - [Tax lien](https://wallacecpa.multisites.ai/glossary/tax-lien) - [Installment agreement](https://wallacecpa.multisites.ai/glossary/installment-agreement) - [Offer in compromise](https://wallacecpa.multisites.ai/glossary/offer-in-compromise) - [Form 2848 power of attorney](https://wallacecpa.multisites.ai/glossary/form-2848-power-of-attorney) ## Sources 1. [IRS: Levy](https://www.irs.gov/businesses/small-businesses-self-employed/levy) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092