While the most extreme example of a property levy is the IRS seizing your home, bear in mind that "property" does not just refer to real estate holdings, but also includes your car, boat, antiques, jewelry or any other valuable possession that the IRS could sell and apply to your tax debt. In other words, renting a house or apartment does not protect you from a property levy. If you don't own a home, the IRS can just as easily issue a property levy on your car or any other valuable property you own.

The IRS must send you a notice of its intent to levy 30 days prior to doing so. (However, if the IRS's contact information for you is out of date, you may not get the notification.) You should use this time to try to settle with the IRS, if you have not already done so. The IRS may still accept a payment agreement, an offer in compromise or a payment in full in lieu of carrying out the property levy. A tax professional may be able to provide you with alternatives to having your assets seized by the IRS.

If, for whatever reason, you are still unable to prevent the property levy, the IRS must provide you with one a final opportunity to settle your tax debt before your seized property is lost forever. In the case of your non-real estate assets, the IRS holds your possessions for 40 to 45 days prior to selling it. You may be able to use this time to prevent the sale by paying your tax debt in full or by setting up a payment agreement. In the case of real estate sales, if you are sill living at the property, you do not have to vacate immediately after the sale. Rather, the new owner has to undertake eviction proceedings, and you can tell the judge you intend to buy the property back from the new owner within 180 days.

However, if at all possible, you should do everything you can to prevent the IRS from carrying out a property levy by making alternate arrangements before your property is seized. A tax professional may be able to assist you in preventing a property levy or, if it is already too late for that, may be able to help you settle your tax debt before your property is sold.