Liens and Levies

The Difference Between a Lien and a Levy

The simple difference between a lien and a levy is their effects on the property you own. A Lien is a claim registered against property for not paying taxes. It does not deprive a taxpayer of their property or the right to transfer property.

A Levy follows after a Lien has been filed. A Levy usually happens because of bad communication between the taxpayer and the IRS. A Levy is a seizure, it takes your property and transfers ownership to the government!

ANotice of Tax Lien filing is done at the Office of the Recorder of Deeds for the county where you live, NOT necessarily where the property is located.

IRS Levies

An IRS levy can be issued on virtually any of your assets, including your money as well as any of your possessions that can be resold to pay your tax debt.

There are three major types of levies. They enable the IRS to seize money from bank accounts, wages and property,including your home, car or any other valuable possession that can be resold and applied to your tax debt.

A levy is much more serious than a lien. With a levy, the IRS can seize your property (including a portion of your wages) and your bank account could be frozen up to the amount of the levy for 21 days. You can  challenge the levy, but if unsuccessful, the funds are automatically given to the IRS. If this does not work, they will garnish wages (see Wage Garnishments)

Something to really consider is that since liens and levies are public record, they can affect other parts of your life. They will show up on your credit report. Don't let a lien or levy to wreak havoc on your life! You may be eligible for other options such as an Offer in Compromise, Currently not Collectible, Innocent Spouse, or Installment Agreement. Contact our office for further details. We can help you with your Lien or Levy. 

Tax attorney Sherri Carver has the knowledge and the experience necessary to assist you with Liens and Levies. Dealing with tax problems can be one of the most stressful times of anyone's life; Don't handle it alone! You need a tax attorney who understands tax law and how to help you end your tax problems.

Contact Our Office today for a free consultation regarding your tax problems!