LienvsLevy
What it does
Secures the IRS claim on your propertyTakes the property to pay the debt
Public?
Yes, the Notice of Federal Tax Lien is publicSent to your bank, employer or other holder
What it covers
All your property, now and laterWages, bank accounts, retirement, Social Security, a car or home
The short answer
A lien is a claim on your property. A levy takes it.
Lien vs Levy at a glance
| Lien | Levy | |
|---|---|---|
| What it does | Secures the IRS claim on your property | Takes the property to pay the debt |
| Public? | Yes, the Notice of Federal Tax Lien is public | Sent to your bank, employer or other holder |
| What it covers | All your property, now and later | Wages, bank accounts, retirement, Social Security, a car or home |
| Notice first | Letter 3172, with 30 days to ask for a hearing | Notice of intent to levy, at least 30 days before |
| How it ends | Released within 30 days after full payment | Released if you pay, set up a plan, or show hardship |
What to know
A lien can make it hard to borrow or sell. A levy takes money or property you need now.
Both can be appealed. Publication 1660 explains your rights.
Paying in full, a payment plan or an offer can stop both from getting worse.
Lien may fit if
- You are trying to sell or refinance
- You need a payoff or a withdrawal
- You want to know what is on public record
Levy may fit if
- Your pay or bank account is being taken
- You got an LT11 or Letter 1058
- You need the money for basic living costs
Results depend on your situation. Not every case qualifies.
Common questions
Can the IRS levy without a lien?
Yes. Any property that belongs to you, or that has a lien on it, can be levied unless the law exempts it.