Taxpayers often get confused when talking about a tax lien versus a tax levy. They are both used as part of the collection process when taxpayers owe money to the IRS or other tax agencies. Both liens and levy’s can have a negative impact on taxpayers. However, they are two separate things. Follow along while we dive a little deeper...

Tax Lien
A federal tax lien is a claim to a taxpayer's current or future property, the IRS hasn’t actually taken anything from the taxpayer. With a lien, the IRS files a Notice of federal tax lien to put the public on notice that this taxpayer owes money to the IRS. All tax owed is considered to have a federal tax lien , but once taxpayers owe certain amounts the IRS will file a Notice of Federal Tax Lien to let the public know. This alerts creditors that the taxpayer owes the government money and that the IRS is asserting a secured claim against your assets. When you try to sell your property the IRS debt will need to be paid. This will affect the taxpayers credit report, and shouldn’t be taken lightly.

Tax Levy
A levy is when the IRS takes property, such as garnishing wages, bank balances, or seizure of other assets to sell in order to satisfy the debt. A tax levy is not a public notice and shouldn’t affect the credit report. Though, a tax levy can be even more damaging to taxpayers, as the IRS can dip into the taxpayers bank accounts, or garnish their paychecks to satisfy the tax debt. This action can cause taxpayers extreme financial damage and requires immediate response to help stop the IRS from helping itself.

The specialists at Tax Relief, Inc. have been in the business of resolving tax issues for 40 plus years. Each of our highly-qualified and accredited partners have dedicated themselves to advocating for the rights of taxpayers. Whether you’re in need of corporate tax relief, help with filing back tax returns, state tax liens, filing for innocent spouse relief, or tax appeals, Tax Relief, Inc., is truly your greatest resource. For more information, please visit our website, or call (630) 655-1040 to schedule a free consultation.