IRS Lien Vs. Levy. What's the Difference?
Bob Jablonsky
I help taxpayer reduce their tax liability and solve their tax problems!
There is often confusion between what an IRS Lien is vs. an IRS Levy. What is the difference.
In general, a lien is a right to an asset belonging to another until that debt is discharged. Think of a home loan. The lender has a lien against the property until the mortgage is paid off. The borrower owns the home but they can't sell it without the lender being paid off. An IRS lien is similar. Here's a link to the IRS website section on Federal Tax Liens - https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien With a levy, the IRS is "taking things". For example, a bank account levy would take money from the taxpayer's bank account. If a home was seized (very uncommon), the home would be taken and sold by the IRS. This section on the IRS website covers levies - https://www.irs.gov/businesses/small-businesses-self-employed/levy
If you want to learn more on a IRS levy vs. a lien, watch my video at https://youtu.be/qDMoaYGkhpE. If you have IRS problems and need professional help, give me a call at (972) 821-1991 or schedule 15 minutes on my calendar at https://meetme.so/bobjablonsky