Levy vs Lien
Levy and lien action can happen at any time, usually when you are not expecting it. While they both can harm you financially, they can affect you in different ways. The effects of a levy are immediate, because it garnishes your funds the day it is received. If you were waiting to call the Internal Revenue Service or Franchise Tax Board, a levy will require you to call sooner than later if you want to release your funds. Levies can be issued multiple times to multiple sources, which increases their effectiveness to get people to respond.
While a levy has an immediate effect, a lien’s effect is usually not felt until a later date. A lien can be filed for years before you feel the effect, because it does not come into play until you sell or refinance real property. Since a lien is filed with the county recorder’s office, it is public knowledge, which means it can also affect your credit rating.
Managing your tax debt sooner than later will help you avoid tax problems like levies and liens. The tax debt workshops offered by Collection Alternatives will provide you with tax relief options and knowledge about the collection process, so you can be better prepared to discuss a resolution. If you have questions or would like to sign up for a workshop, please call me.