Tax Liens And Tax Levies

What is the difference between an IRS tax lien and an IRS tax levy?

A tax lien is a document filed in a public place such as a California County Recorder’s Office telling the world that you owe taxes. A tax lien lists the years for which taxes are owed the type of tax and the amount of the taxes owed. Credit reporting agencies will find the tax lien and report it on your credit report. If you want to sell any real property you own, the IRS or Franchise Tax Board of California will be paid out of the equity in your property by the escrow company. No money will be taken out of your bank account by the tax lien.

If the IRS or California FTB serves a tax levy on your bank then the bank is required to send all of your money to the IRS or FTB that is on deposit the day the levy is served. If the IRS or FTB sends a wage levy for delinquent taxes to your employer then your employer is required to send almost all of your earnings to the IRS or FTB less a small amount which is exempt.

Call a California tax attorney to discuss the help you need to fix your tax problem. Call Mitchell A. Port at (310) 559-5259.