' IRS Levy vs Lien - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How the IRS Deals with Liens and Levies

Have you received a notification that you owe the IRS money? This letter can be one of the most frightening you ever receive as an American citizen, and unfortunately, many people choose to deal with their fear by ignoring the problem and hoping it goes away. It won’t. The IRS will continue to seek payment of any money it is owed and it will take drastic measures – measures that aren’t even an option for other debt collectors – to collect the money you owe.

IRS Liens

One of the first aggressive steps the IRS takes if you have not paid a debt is to put a lien on your property. This ensures the IRS will have a claim on any proceeds you receive in relation to the property. IRS liens can be placed on real estate, personal property, and financial assets. The IRS does this by filing a Notice of Federal Tax Lien with the court. This document alerts your creditors that you “share” the ownership of the property with the IRS now and the lender cannot allow you to dispose of or borrow against the property without the IRS’s involvement.

IRS Levies

Another option the IRS has when you owe money is to get a levy on your property. This is even more aggressive than a lien because it allows the IRS to seize your personal property. Liens guarantee security for tax debts, but levies give the IRS the power to sell your property in order to receive payment. Levies make it possible for the IRS to seize and sell any property you own. This includes your home and your vehicle. It also enables the IRS to go after assets or property that are controlled by a third party. This includes your bank assets, retirement accounts, and insurance policies. Essentially, a levy allows the IRS to take everything you own in order to settle the debt you owe.

The good news, if you can consider anything associated with a tax debt good news, is you have some time to resolve the issue. Like many government processes, it does take some time for the IRS to take action. This means you can make arrangements to avoid liens and levies.

This does not mean you should ignore any notices you receive or assume you won’t need to fix the problem for a few months. It usually takes about 30 days after you are notified of the debt for the IRS to begin action on a lien or levy. The sooner you take action to resolve the matter the better.

To learn more about how the IRS can use liens and levies against you, visit IRS.gov.

Have you been contacted by the IRS about a debt? Do you know an outstanding debt is about to catch up with you? We can help. Dealing with the IRS is one of the most intimidating situations you can face. Doing it without guidance or support can be a big mistake. The best thing you can do is contact an attorney who understands debt collections. They can help you make the best decisions. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can You File Bankruptcy on a Title Loan?

If you're struggling with debt and have a title loan, you may wonder if bankruptcy can help you escape that...
Read More

Will Bankruptcy Affect My Security Clearance?

When you're facing financial difficulties, the prospect of bankruptcy can be daunting. This concern is amplified if you hold or...
Read More

What is Involuntary Bankruptcy?

Bankruptcy is a legal process that allows individuals or businesses to resolve their debts under the protection of a bankruptcy...
Read More

Is It Bad to File Bankruptcy at a Young Age?

Filing for bankruptcy is often viewed as a last resort for those overwhelmed by debt. While it is a significant...
Read More

How Far Back Does the Bankruptcy Trustee Look?

Filing for bankruptcy is a complex process that requires full transparency and cooperation with the bankruptcy trustee assigned to your...
Read More

Can Bankruptcy Be Reversed?

Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of...
Read More

Can I Sell My House While in Bankruptcy?

Filing for bankruptcy can be a complex and stressful experience, especially when it comes to your significant assets like your...
Read More

Does Bankruptcy Clear Attorney Debt?

Filing for bankruptcy is a complex process that often requires the expertise of a bankruptcy attorney to navigate successfully. However,...
Read More

What to Ask a Bankruptcy Attorney?

Deciding to file for bankruptcy is a significant and often emotional step, and having the right legal guidance is crucial...
Read More

How Can I File Bankruptcy with No Money?

Filing for bankruptcy is often seen as a last resort for those overwhelmed by debt. It's a step that provides...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.536.4468

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 328-6667
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 274-9155

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 492-2663

Map And Directions