People often use "lien" and "levy" interchangeably, but they are very different. A federal tax lien is the government's legal claim against your property when you have unpaid taxes — it secures the debt and can affect your ability to sell or refinance. A levy is the actual seizure: the IRS taking funds from your bank account, paycheck, or other assets.
Releasing a federal tax lien
There are several routes depending on your goal:
- Release — removing the lien once the debt is paid or otherwise satisfied.
- Withdrawal — removing the public Notice of Federal Tax Lien (helpful for credit) when you qualify, such as after entering a direct-debit installment agreement.
- Discharge — removing the lien from a specific property so you can sell it.
- Subordination — letting another creditor move ahead of the IRS so you can refinance.
Stopping a bank levy
A bank levy freezes your account and, after a 21-day holding period, sends the funds to the IRS. That 21-day window is critical — it is your opportunity to demonstrate hardship or arrange an alternative and get the levy released before the money is gone. See IRS — Levy.
The 21-day clock
If your bank account has been levied, contact us immediately. Funds are held for 21 days before being remitted — acting within that window is the difference between recovering your money and losing it.
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