A federal tax lien is a legal claim against your property. A levy actually seizes property or rights to property—such as wages or a bank account. People often use the words interchangeably, but they are different tools with different remedies, and the right response depends on which one you are facing.
Request a consultationA Notice of Federal Tax Lien attaches to your property and can complicate refinancing, selling a home, or obtaining credit. Depending on the facts, relief may be available through withdrawal of the notice, discharge of a specific property, or subordination that lets another creditor take priority—each with its own statutory tests. Resolving the underlying balance, or entering the right agreement, can also open the door to lien relief.
A wage levy is continuous—it keeps taking from each paycheck until released or the debt is satisfied. A bank levy typically freezes funds for a holding period before they are turned over, which sometimes creates a brief window to seek release. We review whether the levy was properly issued, whether you had a right to a hearing that was skipped, and whether release or modification is available under IRS guidance.
Many liens and levies come with Collection Due Process or equivalent hearing rights. Those rights are time-sensitive and easy to forfeit by waiting. Preserving and using them is often the fastest route to pausing enforced collection and getting a case in front of someone who can negotiate.
Lien and levy issues rarely stand alone. If you are negotiating an installment agreement or an offer in compromise, the lien and levy strategy needs to align with that plan—sometimes a lien is withdrawn as part of a direct-debit agreement, for example. We treat the notices as one connected problem rather than a stack of separate emergencies.
A lien is a legal claim that secures the government’s interest in your property; a levy is the actual seizure of property or funds. A lien can hurt your ability to sell or borrow; a levy takes money directly, such as from wages or a bank account.
In some cases. Depending on the facts, a lien notice may be withdrawn, or a specific property discharged, or the lien subordinated to another creditor. Resolving or paying the underlying debt, or entering certain payment agreements, can also lead to release.
Often, yes. A levy may be released or modified when it creates economic hardship, when a payment arrangement is put in place, or when the levy was not properly issued. Because a wage levy is continuous, acting quickly matters.
The major credit bureaus no longer include tax liens on consumer credit reports, but a Notice of Federal Tax Lien is a public record and can still be discovered by lenders and affect financing and property transactions.
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Learn more →Assistance with Comptroller and Department of Assessments matters alongside federal issues.
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