LEVY

To assess; to seize or collect. The legal seizure of property in order to repay debt. In the United States, the Internal Revenue Services (IRS) has the authority to levy a person’s assets such as a car, boat, house, or property that belongs to an individual and is being held by another person, including accounts receivables, bank accounts, dividends, licenses, rental income, retirement accounts, wages, commissions or cash loan value of a life insurance policy.

To levy a tax refers to evaluating a property and determining the rate of taxation. On the other hand, to levy an execution means appropriation or seizure of an individual’s asset to satisfy his or her own obligation. Levy is different from lien; the latter is used to claim a security for the tax debt.

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