What’s a lien? What’s a levy? What’s the difference?

Both a tax lien and a tax levy are collection tools used by the IRS and State to pressure taxpayers into payment or making payment arrangements. But there is an important distinction between a tax lien and a tax levy.

tax lien is the government’s legal claim against your property when you fail to pay taxes owed. A tax lien is used as security for the tax bill, alerting creditors the government has a legal right to your property. And it includes all your property, including real estate, personal property and financial assets.

tax levy is a legal seizure of your property to “pay” taxes owed. A tax levy calls for the seizure and sale of any type of property you own or have an interest in. That means it can be property that you hold (like your house) or property that is yours but held by someone else (like wages and bank accounts).

The good news? In many cases, liens and levies can be temporary or released once the taxpayer is accepted into a payment program.

For additional information on liens and levies, visit the FAQ on Tax Liens and Levies.

One Last Thing

If you find yourself under a tax lien or levy (or even threatened with the prospect of one), Strategic Tax Resolution can help. We have the experience it takes to negotiate on your behalf to release the liens and/or levies and get the best possible outcome for you. Contact us or give us a call at 888-339-4914 for a free consultation. We’ll help you get on your #RoadToResolution.