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Tax Lien vs. Tax Levy: What's the Difference?

Video Transcript

IRS this or that? Which is worse, a tax lien or a tax levy? Okay, so a lien, the IRS is staking a legal claim on everything you own, your house, your car, your assets. It tanks your credit. It blocks refinancing and it follows you around. It's bad, but they're not taking anything yet. A levy, they're actually taking it. Freezing your bank account, garnishing your paycheck, seizing property. That's the lien that's escalated. So, which is worse? I think the levy, but the lien is a warning sign most people ignore until it's too late. If you've got a lien notice, call us before it becomes a levy.

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This content was written and reviewed by the licensed tax attorneys at Victory Tax Lawyers, LLP. Our attorneys specialize in IRS tax relief and are licensed members of the California State Bar with a nationwide practice.

Last Reviewed: 2026  ·  Meet Our Attorneys →

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