Glossary

Tax levy

A levy is the IRS's legal seizure of property to satisfy a tax debt, most often a bank account or wages, issued after a final notice of intent to levy and the expiration of the 30-day hearing period.

How it works

A levy is the IRS’s legal seizure of property to satisfy a tax debt, issued after a final notice of intent to levy and the 30-day hearing period. A bank levy freezes funds on the day it is received and the bank sends them after 21 days unless the levy is released. A wage levy continues each pay period until released. Levies can be released for hardship, a payment arrangement, or procedural error.

Why it matters

The 21-day window on a bank levy is the time to act; after that the money is gone.

Related: bank levy, wage levy. Read more: how to stop an IRS tax levy.

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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