Tag Archive for Tax Levy

IRS Liens And Levies

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

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What You Need To Know About Levies By The IRS

A Federal Tax Lien just makes sure the IRS eventually gets paid. A levy means now the IRS gets paid.

A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

If you do not pay your taxes (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in.

For instance, Read More

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The Power Of The Federal Tax Lien

A lot of people get confused between Tax Liens and Tax Levies – let us break this down for you.

A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.

When would the IRS file a Federal Tax Lien?

The IRS will file a lien when the agency feels there is a chance that collection is in peril. It does not just grab your assets. Filing of a tax lien is normally dictated by the dollar Read More

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