Unlike a levy targeting intangible assets like your bank account, a seizure involves confiscating physical assets such as your home or car. This typically occurs in severe cases where repeated requests by the IRS to settle outstanding taxes have been ignored.

It's crucial to take the possibility of a seizure seriously. The IRS is fully prepared to take physical assets if necessary. Numerous reports in newspapers and on television show people being evicted from their homes, which are then sold at IRS auctions, often for much less than their value—sometimes as little as half.

When the IRS proceeds with a seizure, it aims to sell the assets quickly at auction. It frequently receives less than half of the asset's value, which is why it may seize everything you own, including homes, cars, boats, jewelry, motorcycles, insurance policies, and even retirement funds.