IRS Lien vs IRS Levy: What’s the Difference?

People use “lien” and “levy” like they mean the same thing. They don’t. A lien is a legal claim. A levy is the IRS actually taking money or property.

A lien is often the “credit and property” problem. A levy is the “cash flow” emergency.

Lien: A Notice of Federal Tax Lien is filed publicly and can block selling/refinancing.
Levy: Bank levy freezes funds and wages can be garnished continuously.

If you’ve received a final levy letter, read this next: LT11 / Letter 1058.

Identify what you’re actually facing. A lien and a levy are handled differently.
Check for escalation notices. If you’re still early (like CP14), you can usually prevent levy action by acting now.
Choose a protected status:
- Installment Agreements (payment plans)
- Currently Not Collectible (CNC) hardship status
- Offer in Compromise (settlement) guide
- Penalty abatement strategies (often reduces the balance before negotiating)
Stay compliant. Unfiled returns block most solutions. Start here: Dangers Ignoring Past Due Returns

Some IRS debts expire, but certain actions pause the clock. Learn the basics: IRS statute of limitations.

Secure Upload: Encyro Secure File Upload

Allen Lenth, EA, MBA
Appointments |
Free Tax Questions |
Encyro Secure File Upload
Executive Tax Solution |
IRS Decoder |
Tax Assassin® Portal

“Knowledge is power.” — Francis Bacon
“But without faith it is impossible to please him…” — Hebrews 11:6

IRS Lien vs Levy: Waht’s the Difference?