A levy is a legal seizure of your property to satisfy tax debt(s). Levies are different from liens. A lien is an instrument used as security for the tax debt, while a levy actually takes or seizes the property to satisfy the tax debt.
If you do not pay your tax debt (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in.
IRS could seize and sell property that you hold (such as your car, boat, or house), or
IRS could seize property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, rental income, accounts receivables, the cash value of your life insurance, or commissions).
What can I do?
You got into this dire situation most likely by failing to communicate with the IRS. The way to get out of it is to open a dialogue immediately with the IRS. An Enrolled Agent or tax specialist may be able to negotiate with the IRS to settle your debt - if you qualify -- in a much more reasonable and beneficial manner. They may be able to help you with an Offer in Compromise, Installment Agreements or maybe Currently Not Collectible. If an asset seizure would cause severe hardship, a Taxpayer Assistance Order can be requested to protect you.