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IRS Lien vs. Levy: What’s the Difference? (Infographic)

Darrin T. Mish

Tax Attorney • 32+ Years Experience

I'm Darrin Mish. For 32 years I've practiced federal tax litigation — routine audits, Tax Court cases, and everything in between. If you're facing an IRS issue, here's what you need to know first.

Tax attorney Darrin Mish put this one-page guide together from official sources. Save it, print it or share it with someone who needs it.

Lien or levy? Infographic from tax attorney Darrin Mish.

What the infographic says

Lien or levy? They are not the same. A lien is a claim against your property. A levy actually takes it. Here is how the IRS explains each one.

Federal tax lien

  • What it is: The government's legal claim against your property when you neglect or fail to pay a tax debt.
  • When it arises: After the IRS assesses the tax, sends you a bill, and you neglect or refuse to pay in full in time.
  • What it covers: All your assets, including real estate, vehicles and financial assets, and assets you get later.
  • Public notice: The IRS may file a public Notice of Federal Tax Lien to alert creditors. It may limit your ability to get credit.
  • Getting it released: The IRS releases the lien within 30 days after you pay the tax debt in full.

IRS levy

  • What it is: A legal seizure of your property to satisfy a tax debt.
  • What it can take: Wages, bank accounts, retirement accounts, commissions, your car, your house and other property.
  • Before a levy: Usually a tax bill, then a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days before.
  • Wages: A wage levy is continuous. A portion of your wages is exempt.
  • Bank accounts: Funds are held, and after 21 days they are sent to the IRS.

The Final Notice of Intent to Levy also tells you about your right to a hearing. Act before the deadline on your letter.

Sources

Checked October 2026.

If you have a question about your own situation, call tax attorney Darrin Mish at (813) 229-7100.

Attorney advertising. General information, not legal advice. Every case is different; follow the instructions and deadlines on your own notice.

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