A levy is a tool that the IRS uses to obtain money from you. If you fail to enter into a payment agreement or some other resolution with them, the IRS’s next step will be to levy your bank accounts, or perhaps levy your wages. What happens is the IRS sends out a Levy Notice to your employer and requires the employer to pay part of your salary to the IRS to satisfy your debt. Alternatively, the IRS can send out a bank levy to your bank so that the bank will hold funds that are currently in your account for 21 days, and then send them to the IRS.