A levy is a legal seizure of property to pay of tax debt. If you have unpaid taxes, the IRS has the ability to seize and sell any real or personal property that you own.
It is important to understand what taxes your or an entity you own owe because the IRS can take and sell your property to pay of taxes that you have neglected to pay. They can also levy your wages, salary, or federal payments until the levy is released or you pay off the tax debt. However, the IRS is required to send you notice after they have assessed your tax and a final notice before levying any property. Also, you may ask the IRS to review your case within 30 days of notice and demand for payment. This gives you the ability to ensure that you are not being wrongfully charged. Therefore, you will have the ability to fix any mistakes you have made before any of your property is levied. Nevertheless, determining the proper amount of tax to pay will save you from spending a lot of time and money correcting mistakes and paying tax debt.