IRS tax liens and tax levies – these are words often used mistakenly to refer to each other, and are often equally dreaded by those who’ve failed to pay their taxes in full. But in effect, they are different.

What Is a Tax Lien?

A lien is basically a provision to secure the rights to the property of the defaulting taxpayer – it does not involve seizing the property which a tax levy would do. The IRS files a lien when it sniffs potential issues it could face in collecting the tax amount from you. The lien notice is then entered into the files of the office of the public records and gets tagged to whatever property you own. The money you get when you sell that property will go towards the lien. The worst part is, unless the lien is satisfied it will be on your credit report, which Read More