What Is a Tax Levy? What It Means, How It Works and How To Stop One

What a Tax Levy Is — and How It’s Different From a Tax LienA tax levy is the enforcement step the government uses when a tax debt remains unpaid after repeated notices. Tax Levy vs. Tax LienFeature Tax Lien Tax Levy What it is Legal claim against your property Actual seizure of money or assets What it does Secures the government’s interest Collects the unpaid tax When it happens After tax is assessed and unpaid After notices and appeal window Immediate impact Affects property rights and financing Reduces cash flow or removes assetsThe Difference Between Tax Levy and Tax LienSimply put, a lien confers a legal right whereas a levy actually confiscates property. How To Stop a Tax Levy or Get It LiftedThe fastest way to limit damage is to act before a levy begins. There are a few ways to get rid of a tax levy: Consult a tax relief company like CommunityTax, Tax Relief Advocates or Precision Tax Relief. Yes, the tax levy will be after several notices and generally, it's only used after the following occurs: The tax has been assessed.