An IRS tax levy takes immediate action against you. It requires the person receiving the levy to turn over all funds due you the IRS. This could be the money in your bank account, the paycheck from your employer, or your accounts receivable if you are in business. A federal tax lien is used as security for amounts owed to the IRS for the tax liability. It says that the IRS has the right to seize the property before other creditors. According to tax law, if the IRS has a levy against your property, they can actually take your property to satisfy that debt.