Which statement best describes a tax levy?

• A. A levy is a formal written notice of audit.
• B. A levy is a request for payment plan.
• C. A levy is the act of sending a bill for taxes.
• D. A levy is the actual seizure of assets to satisfy the debt.

Answer: (D)

A tax levy is the actual seizure of assets to satisfy a tax debt. It goes beyond just billing or requesting payment; it involves the government taking property or funds (such as money in a bank account, wages, or other assets) to satisfy what’s owed. This step typically comes after other collection actions and notices have been issued, and it reflects the enforcement action to compel payment. The other options describe things like a notice of audit, a request for a payment plan, or simply sending a bill, none of which involve the government physically taking assets to satisfy the debt.