Tax Lien Attorney Illinois

Lien vs. Levy

Does the letter from the IRS mention a lien or a levy? 

Let’s start with the property you own. A Lien is a claim registered against property for not paying taxes. It does not take away a taxpayer’s property or the right to sell or transfer ownership of the property.  However, when such property is sold, that lien will be collected.

A Levy comes after a Lien has been filed. A Levy happens because the taxpayer fails to satisfy the Lien within a certain period of time. A Levy is a seizure, it takes your property and transfers ownership to the government

Tax Levy (Can be issued on any of your assets)

With a Levy, the IRS can seize your property, your wages, and your bank account could be frozen up to the amount of the levy for 21 days. Within the 21 day period following the levy, funds may be returned upon the showing of dire financial hardship. However, this is highly unlikely and most commonly the funds are automatically given to the IRS.

Once the IRS has exhausted its ability to collect your tax debt from a bank levy, they will garnish your wages.

Once the IRS removes funds from your bank account, garnishes your wages, or seizes your home, your car or other valuable items, it is likely the case that you will never get these assets back.  However, moving forward, our law firm can put an end to wage garnishments and control your tax debt by protecting your assets.