IRS Tax Lien and Levy Details

IRS Tax Lien and Levy DetailsResidents of Unites States who are experiencing tax debt issues are going to hear two terms which are levy and lien.  These two are related to each other but do not have the same meaning.  They have completely different terms which are mistaken by other people.  You would be able to differentiate the meaning of these two after reading this helpful article.  But first you need to know the explanation for each one.

IRS Tax Lien
IRS tax lien simply means that the Internal Revenue Service would close out your property for non-payment of taxes to the government.  It acts as a security just in case you would not make the necessary tax debt payments.  The delinquent property would remain under their care until all outstanding debts are paid in the specified time.  Anytime, the IRS can file the lien against your property.

IRS Tax Levy
The next step after the filing of liens is the tax levy.  The Internal Revenue Service will sell the delinquent property and keep the money, if they feel that the debt you have cannot be repaid in due time.  The money acquired would be considered as payment for the debt.

The chances of the lien reaching the levy level are quite rare.  However, if you owe them a substantial amount of money and cannot pay it, then your properties are going to be the casualties.  It is highly advisable to pay your taxes always.  Do not miss any because the Internal Revenue Service keeps note on all tax debts.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s