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What’s the Difference Between a Tax Lien and a Tax Levy?

Monday, January 25, 2016
In simplest terms, a tax lien is the legal action the government takes to claim a taxpayer’s income, asset and/or property if they owe a lot of money to the IRS.  A tax levy is the process the government takes to seize or take away the property and other assets, such as wages and money in bank accounts, Social Security benefits, vehicles, and/or other property, to directly satisfy the tax debt.  If you receive a Federal Notice of Lien, it is bad; however if you receive a Federal Notice of Intent to Levy then you are in trouble and may need legal services.
 
We are the Strategic Tax Lawyers, specialty IRS Intent Levy attorneys, BOE Tax Attorneys and IRS CP-523 Attorneys in the greater Los Angeles area who specialize in tax liens Tax attorneys take federal tax liens very seriously and our tax attorneys at the Strategic Tax Lawyers can assist you with tax liens and levies.
 
The IRS will issue a tax lien, usually if you owe $10,000 or more, so that they can get a payment on taxes that are owed to them. A lien can be filed even if the IRS has a payment plan with a taxpayer in order to make sure that the taxpayer will pay the IRS.  Many times, this can cause your credit score to get affected negatively or even to obtain any form of credit until the debt it is paid off.  That means that you may have difficulty purchasing cars, property, or other large items because the lien can affect your credit score. We, the Strategic Tax Lawyers, can assist clients to eliminate a tax lien or appeal the tax lien filing to remove it from the credit record.
 
The IRS will issue a Federal Notice of Intent to Levy if there are delinquent taxes and there is no attempt made to pay them off. This is a final official notice to let the taxpayer know that their previous efforts to collect payments were unsuccessful. If this is the case, you should contact an attorney to know which items are exempt from levy, like certain benefits and goods. You have 30 days to file an appeal after you receive a Federal Notice of Intent to Levy. A tax lien will be filed in order to collect payment.
 
We want to help taxpayers solve their tax debt issue so they can avoid a tax lien and a tax levy. The tax attorneys at the Strategic Tax Lawyers prefer to work with clients before the notice becomes a lien.  This way the taxpayer can avoid the financial problems that come with a lien.  A tax attorney may be able to reduce the tax debt owed using penalty abatement or the IRS Fresh Start Initiative.  When no action is taken the IRS will seize the assets.
 
Do you have a tax lien filed against you?  The Strategic Tax Lawyers, LLP are IRS Intent to Levy attorneys BOE Tax Attorneys, and IRS CP-523 Attorneys who specialize in the tax code with years of experience in tax-related and IRS issues. The Strategic Tax Lawyers have over fifteen years of experience successfully helping clients with levies.  If you or anyone you know received a notification from the IRS or if you are at risk of having a tax lien placed against you, contact the Strategic Tax Lawyers at (800) 669-4775 for a free case consultation.