It also makes it virtually impossible to get the credit you need to finance larger purchases such as a car or home. Finally, a federal tax lien means you will not be able to sell or transfer property because you no longer have a clear title. Whenever you receive notice of tax lien you should call me immediately. Time is very important because delay can cost you very valuable rights. Levies and Seizures A levy is a legal seizure of your property to satisfy your tax debt.
Levies are different from liens.
A lien is a claim used as security for your tax debt, while a levy actually takes your property to satisfy your tax debt. If you do not pay your taxes the IRS may seize and sell any type of real or personal property that you own or have interest in. The IRS can levy property that is yours but is held by someone else such as your wages, checking and savings accounts, accounts receivable, retirement accounts, dividends, licenses, rental income, the cash value of your life insurance, or commissions. After your property is seized the IRS will proceed to sell it. After the sale the IRS will first use the proceeds to pay the expenses of the levy sale.