What’s the difference between a tax levy and a tax lien?
A tax lien gives the government a legal claim to your property as security or payment for your tax debt. It negatively affects your credit report. A tax lien can be appealed. A tax lien is typically a precursor to a tax levy. A tax lien is usually filed to begin the enforced collection process. A tax levy is a legal seizure of your property to satisfy a tax debt. Tax Levies are different from tax liens. A Tax lien is a claim used as security for the tax debt, while a tax levy actually takes the property to satisfy the tax debt. A tax levy may be appealed by filing a Collection Due Process appeal. A levy must be preceded by a Final Notice of Intent to Levy.
