Levy
Definition of 'Levy'The legal seizure of property to satisfy a debt. In the U.S., the Internal Revenue Service (IRS) has the authority to levy an individual's property, such as a car, boat, house or property belonging to the individual that is held by someone else, including wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, commissions or the cash loan value of a life insurance policy. A levy differs from a lien because a levy takes the property to satisfy the tax debt, whereas a lien is a claim used as security for the tax debt. |
|
Investopedia explains 'Levy'Certain procedures must be followed and requirements met before enforcing a levy. In the U.S., for example, the IRS must first assess the tax and send a Notice and Demand for Payment, and after the individual's neglect or refusal to pay the tax, send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (levy notice). This must be sent at least 30 days prior to the levy, and can be given in person, left at the person's home or place of business, or sent to the person's last known address. A state tax levy applies to unpaid state taxes. |
Related Definitions
Articles Of Interest
-
Tax Credit For Plan Expenses Incurred By Small Businesses
Determine whether your business is eligible to claim a tax credit for establishing a retirement plan. -
Tax Tips For The Individual Investor
We give you seven guidelines to help you keep more of your money in your pocket. -
Don't Put Off Your Year-End Tax Plan
From sales tax deductions to credit reports, check out what items should be on your financial checklist. -
Stop Keeping Up With The Joneses - They're Broke
Conspicuous consumption could be robbing you of future wealth. -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze. -
How To Deduct Your Job Search Expenses
With approximately 12 million Americans out of a job right now, many people are spending significant dollars to be noticed by potential employers. Fortunately, some of these job-search costs ... -
Are IRS-Prepared Tax Returns The Solution To Our Tax Woes?
The government is considering letting the IRS do your taxes for you. While this may sound great, there are plenty of reasons why you may not want to trust the IRS to calculate your tax return. ... -
Approved: Paying Online Sales Tax
States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state.
Free Annual Reports