What is the difference between a tax lien and a tax levy?

While you would not want either one happening to you, there are big differences between a tax levy and a tax lien which should be understood. An IRS tax levy actually physically takes property you own to satisfy your tax debt, either in whole or in part with the Internal Revenue Service. A levy can take money that is in your bank accounts as well as your vehicles and real estate. If you get a notice of intent to levy from the IRS, it is extremely urgent that you get the situation resolved quickly with the IRS, because you could soon wake up to find all your money has been taken from your bank account.

An Internal Revenue Service lien on the other hand does not immediately physically take your property, although it can greatly restrict your rights as to what you can do with your property. The purpose of a lien is to protect the governments interest in your property when you have outstanding tax debt. A federal tax lien can hurt your credit, and it lets creditors know that the federal government has an interest in all your property.

Whether you get a notice of an IRS intent to levy, or a notice of IRS tax lien, you must take action quickly to avoid having much more severe consequences. If you have received an IRS tax lien or levy, or have received a notice that the IRS intends to do lien or levy your property, call IOweTaxes.com at 1-800-408-3122 or email taxhelp@iowetaxes.com for a free no obligation consultation about how to best handle your particular situation.

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