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What is the Difference Between an IRS Levy and a Lien?

What is the Difference Between an IRS Levy and a Lien - Tax Attorney

What is the difference between an IRS levy and a lien?  In the simplest of terms, the difference between a levy and a lien is that a levy actually takes property or money from your account(s) to pay for the tax debt you owe while a lien creates a legal attachment to your property that secures the governments interest (i.e. tax debt).

The difference between an IRS levy and a lien is the difference between “now” and “later.”  The powers of the IRS are very broad in range, and they have the authority to levy (in other words seize) assets such as bank accounts, securities, vehicles, as well as personal property or real estate. Once the IRS seizes control of a financial account you are in for a challenging, long-term experience.

A lien may seem much less immediately severe, but can have long term ramifications on the individual or business. The lien attaches to any asset you have presently, or any expanded or future assets acquired. Federal tax liens will affect your credit and may limit your ability to operate or expand your business, or to take advantage of future opportunities.

The IRS is interested in collecting taxes that are owed. Allen Barron provides several strategies for our clients in IRS controversies.  It is important to work with the IRS to avoid a lien or levy and to preserve the best environment for working through a debt with the IRS. If you owe the IRS more than $25,000 and are concerned about a lien or levy we invite you to contact Allen Barron or call today to schedule a complimentary consultation at 866-631-3470. We will work with you, under the protection of attorney-client privilege to preserve your assets so that you have the best opportunity to work through this challenge and ultimately prosper.