A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against your property to secure payment of your tax debt, while a levy actually takes the property to satisfy the tax debt. A federal tax lien comes into being when the IRS assesses a tax against you and sends you a bill that you neglect or refuse to pay it. The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property. The IRS advises you of the intent to file a NFTL and you have the right to appeal both before and after the NFTL is filed. Your appeal rights are explained in IRS Publication 1660, Collection Appeal Rights PDF. The Notice of Federal Tax Lien is filed in the public record of your local recording office like claims of other creditors. The NFTL may affect your ability to get credit or sell your property. An IRS levy is not a public record. To learn more about liens see Understanding a federal tax lien. Related Levy Collection Process for Taxpayers Filing and or Paying Late Payments Publication Publication 594, The IRS Collection Process
