Tax Controversy Services

Levy and Lien

A levy is a legal seizure of property to satisfy a tax debt. A levy is different from a lien in that a lien is a claim on property used as security for the tax debt, whereas a levy confiscates the property as a means to satisfy the tax debt. When a tax debt is not paid or arrangements are not made to do so, the IRS can seize or sell property—real or personal—that the debtor owns or has an interest in. Examples would be a house, car, or boat. Levy of property held by someone else in the taxpayer’s name might include wages, bank accounts, retirement accounts, rental income, dividends, or the cash value of your life insurance policy. A lien secures the government’s interest in real or personal property. The lien may be used to foreclose or levy the property, or the IRS may wait until the property is sold and then capture the proceeds. Esquire Group is experienced in negotiating with the IRS to secure the release of liens and the reduction or release of levies and in the resolution of other IRS tax matters.