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What is the difference between a levy and a lien?

Updated October 8, 20262 sourcesTaxTruce teamFact checked
The short answer

A lien is a legal claim against your property to secure the debt. A levy actually takes the property to pay it. A lien can hurt your credit and make it hard to sell or borrow. A levy can take wages, bank accounts, retirement money, or property like a car or house.

Sources

  1. IRS: What is a levy?
  2. IRS: Understanding a federal tax lien

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