Tax Lien and Tax Levy What Is The Difference

The terms Levy and Lien are used quite often when it comes to tax related matters. Many people get confused as to their meanings and while they both have their roles, there is a distinct difference. Taken directly from the IRS website, “A Levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.” Neither should be taken lightly as they both have ramifications.

While a lien is claim used for security of the tax debt, it is most commonly attached to real estate. But it is a levy that really hurts as the IRS may seize and sell any type of real or personal property that you own or have an interest in such as:

  • property like cars, boats, homes, etc.
  • property that is yours but held by someone else. For example: wages, retirement accounts, bank accounts, accounts receivables, etc.

If you are burdened with tax debt and unfortunately are presented with an IRS lien or levy, it is wise to take care of the tax problems as soon as possible. Playing the waiting game will only make things worse and the bottom line is that your tax issues will not go away. If you have any questions regarding a tax lien or tax levy that you may have received, please fill out the form to the right or click on the button below and one of our tax consultants will contact you immediately to arrange a free consultation.

Levy and Associates, Inc. is an A+ BBB rated firm and has all the experience you need to handle your tax matters. Our staff consists of CPAs, Attorneys, Enrolled Agents and Former Revenue Officers. We are a Full-Service Accounting firm that specializes in Tax Resolution.

Contact Levy & Associates for Dependable Tax Audit Services

Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.

There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.

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