IRS Tax Liens & Levies: Stop the IRS From Taking Your Income or Property
If you owe back taxes, the IRS may file a tax lien on your property or issue a tax levy that takes money directly from your paycheck or bank account. Both actions are serious. A lien creates a public record that can affect your ability to borrow or sell property, while a levy seizes your income and assets. The good news: you have options to stop IRS collections before they go too far.
What Is an IRS Tax Lien?
An IRS tax lien is the government’s legal claim against your property when you owe back taxes. The lien attaches to your home, car, or other assets and becomes part of the public record. While tax liens no longer appear on credit reports, they can still make it difficult to refinance, sell property, or get new loans until your tax debt is resolved.
Who Qualifies?
An IRS levy is the government’s legal authority to take your money or property to pay a tax debt. Unlike a lien, which is only a claim, a levy allows the IRS to actually collect what you owe. When the IRS uses this authority to take physical property, such as your car or home, it’s called a seizure.
Examples of IRS Levies
- Wage garnishment (paycheck deductions)
- Bank account levy (freezing and withdrawing funds)
- Seizure of physical property (cars, homes, business assets)
IRS Collection Process
The IRS issues notices before filing a lien or enforcing a levy. If ignored, the process escalates.
What Happens If You Ignore Liens & Levies?
Failing to respond to IRS action can result in wage garnishment and asset forfeiture.
- Liens create a public record that attaches to your property. While they no longer appear on credit reports, they can block refinancing, property sales, or new loans until your tax debt is resolved.
- Levies allow the IRS to take money directly from your paycheck or bank accounts, and in some cases, seize physical property.
- Penalties and interest continue to add up, making it harder to recover the longer you wait.
How to Stop or Remove IRS Liens & Levies
Liens and levies are serious IRS collection tools, but there are programs that can remove, release, or reduce their impact if you act quickly.
- Liens: Once filed, a lien generally can’t be “stopped,” but it can be released when your tax debt is paid, withdrawn in certain cases (such as when you enter a qualifying Direct Debit Installment Agreement), or subordinated/discharged to allow property sales or refinancing.
- Levies: Levies (like wage garnishments or bank levies) can often be released if they create economic hardship, if you enter into an IRS agreement, or if the debt is otherwise resolved.
Emergency Levy Release
If a levy creates financial hardship, you or your tax analyst can request an immediate release to unfreeze wages or bank accounts. The IRS is required to release a levy if it prevents you from meeting basic living expenses.
Why Work With Omni Tax Help
Our tax analysts work directly with the IRS to release liens, remove levy pressure, and protect your income.
- Immediate IRS communication and representation
- Decades of combined tax relief experience
- Plans tailored to your situation
Call now to stop IRS collection before it’s too late.
FAQs About IRS Tax Liens & Levies
A lien is a claim on property. A levy seizes your money or assets.
Yes. A lien can be:
- Released when you pay your tax debt in full.
- Withdrawn if you qualify for a Direct Debit Installment Agreement or if the lien was filed in error.
- Discharged from a specific property so you can sell or refinance it.
- Subordinated so other creditors take priority, helping with loans or refinancing.
The best option depends on your financial situation and IRS approval.
Generally, 10 years — but the IRS can renew it if the debt isn’t resolved.
By contacting the IRS immediately, setting up a payment plan, or working with a tax professional to request a release.
Yes. Once you’re compliant with IRS requirements, levies are usually released within about 72 business hours. For wage garnishments, however, your employer must receive the release before their payroll cutoff for it to apply to your next paycheck.