Answers · IRS notices & tax problems
IRS Lien vs. Levy: What's the Difference?
A federal tax lien is a legal claim against property/rights; a levy is an actual administrative seizure to collect.
How it works
The rule, and what it turns on.
Lien rules are primarily §§6321-6323; levy rules §§6331-6344, with notice and due-process protections.
Example
NFTL filing does not itself take bank funds; a bank levy directs surrender of property after statutory procedures.
Common mistakes
What we see go wrong, and what we do instead.
- Using lien/levy interchangeably.
- Missing CDP deadlines.
A better approach
- Review lien release/withdrawal or levy release procedures based on facts.
Authority
Where this comes from, so you can check it.
IRC §§6321-6323 (federal tax liens) and §§6331-6344 (levies).
Relevant case law
United States v. Craft, 535 U.S. 274 (2002) - federal tax lien analysis looks to state-created property rights and federal
law consequences.
United States v. National Bank of Commerce, 472 U.S. 713 (1985) - levy reaches property and rights to property
belonging to the taxpayer, subject to statutory limits.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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