Difference between an IRS Tax Lien and a Tax Levy

There are people who are confused of these terms and take it as the same.  But honestly they’re not.  These 2 terms are engaged in your property but it has a different impact on it.  There are really people who don’t have time to understand these things.  These are the 2 common words that we should not take for granted because once it is filed against us, we might fail to redeem it back.

These are the 2 ways of the counties in collecting back taxes from the property owners.  Some people believed that tax lien is safer since it won’t result in taking the property from you.  This is their way of securing its interest in the property.  It mainly hampers financing in your assets.  If a tax lien is filed against you, this will be seen by the creditors and would lead them to think multiple times in dealing with you.

Tax levy is one of the scariest things that could happen to a property owner.  When it is filed against you, this will result in taking the property forcefully away from you.  This is really an actual taking of your assets to fulfill your IRS debt.  This levy can also command a bank to freeze your funds, your savings account, your retirement account, and worst even in your salary.  This can result in losing everything permanently.  Tax levy is the scariest thing to deal with.

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