If you’ve received a notice from the IRS about a tax lien or tax levy, it can feel confusing and intimidating—especially if you’re unsure what either term really means.
At Back Tax Rescue, we work with homeowners, business owners, and individuals across Gwinnett County every day to stop, remove, or prevent IRS liens and levies. While these terms are often used interchangeably, they represent very different stages of IRS enforcement—and they require very different strategies.
In this guide, you’ll learn the difference between a tax lien and a tax levy, how each one affects your life and finances, and—most importantly—how to fight back before the IRS takes your assets.
🔗 What Is a Tax Lien?
A federal tax lien is a legal claim the IRS places on your property when you fail to pay a tax debt. It’s the government’s way of saying, “We have first dibs on your assets.”
It attaches to:
- Your home
- Your vehicles
- Business property
- Bank accounts
- Future assets or proceeds (like inheritances or settlements)
What a Tax Lien Does:
- Damages your credit (public record)
- Prevents refinancing or selling property without paying off the debt
- Signals to other creditors that the IRS is first in line
What a Tax Lien Doesn’t Do:
- It doesn’t seize your assets
- It doesn’t empty your bank account
- It doesn’t take your paycheck
A lien is the warning sign. A levy is the action.
💣 What Is a Tax Levy?
A tax levy is when the IRS seizes your assets to satisfy a tax debt. This can happen after a lien is filed—but doesn’t always have to.
The most common types of IRS levies are:
- Wage garnishment – A portion of your paycheck is sent directly to the IRS
- Bank levy – The IRS freezes and withdraws money from your bank account
- Asset seizure – They can take your car, home, or business property
- Social Security levy – They can garnish up to 15% of your benefits
Before issuing a levy, the IRS must:
- Send a written notice of intent to levy (usually LT11 or Letter 1058)
- Give you 30 days to respond or request a hearing
🆚 Quick Comparison: Lien vs. Levy
| Feature | Tax Lien | Tax Levy |
|---|---|---|
| Purpose | Claims your assets for unpaid debt | Seizes your assets to pay the debt |
| Notice Required? | Yes | Yes |
| Public Record? | Yes | No |
| Credit Impact? | Yes | No (but affects access to funds) |
| Immediate Threat? | No – passive | Yes – active seizure |
| Can Be Removed? | Yes, if debt is resolved | Yes, if stopped in time |
⚠️ What Triggers a Lien or Levy?
You may face a lien if:
- You owe at least $10,000 in tax debt
- You’ve received multiple notices
- You’ve failed to respond or pay
You may face a levy if:
- You ignore the Notice of Intent to Levy
- You don’t request a Collection Due Process hearing in time
- You’ve made no effort to settle or negotiate your debt
📌 The IRS doesn’t go straight to levies. There’s always a process—but once you reach the final notice, the clock is ticking.
🧠 How to Remove or Avoid a Tax Lien
You can get a lien withdrawn or released by:
✅ Paying the full tax debt
Once the debt is paid in full, the IRS will release the lien within 30 days.
✅ Entering a payment plan
For debts under $25,000, setting up a Direct Debit Installment Agreement can get your lien withdrawn.
✅ Filing for lien withdrawal
Even if you still owe, you can sometimes get the lien removed if it’s in the government’s interest (e.g., helps you get a loan to pay your debt).
🚫 How to Stop a Tax Levy Before It Hits
✅ Request a Collection Due Process (CDP) hearing
You have 30 days from the levy notice to file this request—it pauses all action until the case is reviewed.
✅ Set up an Installment Agreement
Even if you can’t pay in full, showing good faith by entering a plan can stop the levy.
✅ File for hardship status (Currently Not Collectible)
If levy enforcement would create undue financial hardship, you may qualify for a temporary pause in collections.
✅ Submit an Offer in Compromise
If you qualify to settle for less than you owe, this can stop levy action and permanently reduce your tax debt.
👨💼 How Back Tax Rescue Can Help
Whether you’re facing a lien, a levy, or both, we provide professional support that protects your income and property.
Our tax resolution experts will:
- Review your IRS account transcripts
- File for lien removal or levy release
- Stop garnishments and bank levies
- Negotiate affordable payment or settlement plans
- Represent you in all IRS communications and hearings
We’ve helped clients in Lilburn, Buford, Peachtree Corners, Norcross, and throughout Gwinnett County resolve serious IRS actions—without losing their homes or income.
📞 Don’t Let the IRS Take the Next Step
If you’ve received a Notice of Federal Tax Lien or Intent to Levy, time is critical. But help is one call away.
📞 Call Back Tax Rescue: 470-699-1187
📧 Email: info@backtaxrescue.com
🗓️ Schedule Your Free Consultation Now »
Let’s fight the lien. Let’s stop the levy. Let’s take control—before the IRS does.
