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Difference Between an IRS Tax Levy and a Lien

Whenever the government seizes (or threatens to seize) your property as payment for a debt, it can be downright terrifying. After all, you knew you were in debt, but can they really take your home? And if they take it, can they possess it? Knowing what to do when confronted with state or federal tax liens or a tax levy in Montgomery County, TX can be difficult for everyone involved.

Levies and liens are both legal implements designed to satisfy a tax debt, but when you’re dealing with one firsthand, it can be difficult to separate the law from the emotion.

What are tax levies?

Levies occur when the IRS has seized your property and is assessing its value to resell and make its money back. You will get a Notice and Demand for Payment, which can be frightening if you’re living on the grace of whomever—but you still need to retain an attorney and do the best you can.

The IRS can levy your bank and retirement accounts, wages, life insurance payouts, current income, sales commissions and even your federal tax refund. Yes, that means everything you’ve ever earned—including your tax refunds, bank accounts, retirement accounts and property—can go right back to the taxman, especially if you have a bankruptcy proceeding.

What are tax liens?

Federal tax liens in Montgomery County, TX are a notice to other creditors that they have a legal right to your property. Don’t remember signing it over to them? It doesn’t matter—if you have massive unpaid debts, depending on the circumstances, no, they don’t care that it’s where you live. They have every right to seize your property and resell it for the federal government’s purposes.

Luckily, when the federal government attaches a lien to your property, you will get notice and can appeal. That’s when it’s smart to have an attorney on hand—they can help you fight the lie and get the best result possible for your circumstances.

What to do if you have a tax lien or levy

If your tax lien or levy is too difficult for you to pay off, make sure you contact your lenders—and a skilled attorney—right away. Too many people believe that they have no choice but to pay large, burdensome bills when an attorney can help make their tax (and other) debt more manageable. The most important thing to do is to be upfront about your properties and finances so a fair outcome can be reached for all.

Get an attorney for federal tax liens and levies in Montgomery County, TX

If you have a federal tax levy or tax lien on your Montgomery County, TX property that you can’t pay, call James R. Jones, Attorney at Law. Our team is adept with dealing with all number of bankruptcy issues, including unexpected debts like tax liens and levies. Call us today to learn more about our services and how we can help you get out from under your debt.

James R. Jones, Attorney at Law.
James Jones, Esq.

Mr. Jones’ practice concentrates on business and consumer Chapter 7 bankruptcy
and he has been an attorney of record in several hundred such cases.