As unpleasant as receiving an IRS levy or an IRS lien may be, it does not signal impending doom. So let go of the “there’s nothing we can do about this” attitude and don’t automatically pay the piper. While paying your tax debt in full may be the quickest way to get rid of a federal tax lien, it is possible to achieve much better results. When it is in the best interests of the federal government and the taxpayer, there are other options for reducing the impact of a federal levy or lien. However, unraveling the intricacies of this complicated system is not something the average taxpayer can do by themselves; it requires the support of a knowledgeable enrolled agent.
Difference Between an IRS Levy and an IRS Lien
An IRS levy is different from an IRS lien.
An IRS levy allows the federal government to legally take your property to satisfy a tax debt. The IRS can take money that is in your bank account, garnish wages, seize and sell your vehicle, or take your personal property or your real estate.
An IRS tax lien is the federal government’s legal claim against your property. This is what happens when the IRS assesses your tax liability and sends you a bill—a Notice and Demand for Payment—that explains how much you owe, but you fail to pay it.
The IRS will file a public document, called the Notice of Federal Tax Lien, to inform creditors that the government has a legal right to your property. The lien will protect the federal government’s interest in your property, which may include financial assets, real estate, personal property, and more.
IRS levies and liens do not signal the end of the world financially. Secure the best outcome regarding your tax lien or levy; contact the experienced enrolled agents at the Highland Tax Group today.