Post by myTax Solutions on Mar 9, 2016 9:25:15 GMT
-Understanding the Difference Between a Lien and a Levy
It is important to know that a lien is not a levy. Whereas a lien secures the government’s interest in property, a levy attaches to a liquid asset – your money. The IRS will issue levies on bank accounts, personal wages, Social Security benefits, and business accounts/note receivable, or personal property (seizure).
Federal tax liens attach to taxpayer’s assets such as tangible property including homes and vehicles, as well as securities. They will also attach to all future assets that are acquired. A lien will also affect your ability to obtain lending as it severely damages your credit score.
Tax liens will generally stay in place unless the liability is full paid either through a payoff, Installment Agreement or an accepted Offer In Compromise. However, you may also get a tax lien discharged if you are selling property or in extreme circumstances, experience a financial hardship that was created by the lien filing.
It is important to know that a lien is not a levy. Whereas a lien secures the government’s interest in property, a levy attaches to a liquid asset – your money. The IRS will issue levies on bank accounts, personal wages, Social Security benefits, and business accounts/note receivable, or personal property (seizure).
Federal tax liens attach to taxpayer’s assets such as tangible property including homes and vehicles, as well as securities. They will also attach to all future assets that are acquired. A lien will also affect your ability to obtain lending as it severely damages your credit score.
Tax liens will generally stay in place unless the liability is full paid either through a payoff, Installment Agreement or an accepted Offer In Compromise. However, you may also get a tax lien discharged if you are selling property or in extreme circumstances, experience a financial hardship that was created by the lien filing.