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What Is The Difference Between A Tax Levy And A Tax Lien?

April 26, 2017difference levy lien tax

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What Is The Difference Between A Tax Levy And A Tax Lien?

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A tax lien is a claim on your assets (i.e. real estate and/or personal property) that the federal government uses to secure the debt it claims is owed itself from you. The federal tax lien allows the IRS to receive its monies upon the subsequent transfer of your asset(s). When a tax levy is issued by the IRS, the federal government is immediately taking money out of your bank account. Another type of levy is a wage garnishment.