I have been asked about the difference between a tax lien and a levy. A tax lien attaches to property to secure the payment of a tax liability or other debt. A levy, on the other hand, is the actual taking of property for taxes not paid. The IRS can levy on wages, bank accounts, or even real property to collect the past due tax liability.
For the IRS to levy on property, three requirements must be met. The IRS must first assess a tax and send a notice in demand for payment. The taxpayer must then neglect to pay the tax. Third, a levy notice must be sent at least 30 days before the levy. This notice is called a final notice of intent to levy and notice of your right to a hearing.
If you are facing an IRS lien or levy, our firm can help. Call us today for more information.