When you fail to pay a significant sum in taxes, the IRS may go to extreme lengths to collect what you owe. After imposing tax penalties and adding interest charges to your back tax balance, one of the final steps the government can take is to issue a tax lien or levy against you. In order to respond properly, you’ll need to know the difference between these two IRS collection strategies.
- A tax lien is a claim that is placed on your assets by the government. This claim is used as security to encourage payment. Having a tax lien on your account can limit your ability to get credit, secure a loan, or otherwise carry out financial business.
- A tax levy represents actual seizure of your assets to cover your unpaid taxes. The IRS may seize your house, vehicle, bank account, or other property to settle your debt. Wage garnishment is a type of levy.
In order to avoid these worst-case scenarios, it’s vital to seek tax resolution services from skilled pros like those at Taxation Solutions, Inc. We’re the Atlanta area’s best choice for knowledgeable tax help. If you’ve received notice of a tax lien or levy against you—or if you want to keep your tax problems from ever growing this severe—we’re the company to call.
Learn more by getting in touch today!