{"id":5055,"date":"2012-01-20T09:00:06","date_gmt":"2012-01-20T09:00:06","guid":{"rendered":"http:\/\/www.duncanlawonline.com\/?p=5055"},"modified":"2026-06-07T00:40:42","modified_gmt":"2026-06-07T04:40:42","slug":"what-is-a-tax-lien-and-a-tax-levy","status":"publish","type":"post","link":"https:\/\/www.duncanlawonline.com\/staging\/8350\/what-is-a-tax-lien-and-a-tax-levy\/","title":{"rendered":"What Is a Tax Lien and a Tax Levy?"},"content":{"rendered":"<p align=\"left\"><a href=\"https:\/\/www.duncanlawonline.com\/wp-content\/uploads\/2012\/01\/Calendar.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"alignleft size-medium wp-image-5056\" style=\"margin-left: 0px; margin-right: 10px;\" title=\"April 15 Circled on Calendar for Tax Date\" src=\"https:\/\/www.duncanlawonline.com\/wp-content\/uploads\/2012\/01\/Calendar-300x199.jpg\" alt=\"April 15 Circled on Calendar for Tax Date\" width=\"300\" height=\"199\" \/><\/a>With limited exceptions, most Americans are required to file tax returns with the <a title=\"Internal Revenue Service\" href=\"http:\/\/www.irs.gov\/\" target=\"_blank\">Internal Revenue Service<\/a>, and if you work or live in North Carolina, the <a title=\"North Carolina Department of Revenue\" href=\"http:\/\/www.dornc.com\/\" target=\"_blank\">North Carolina Department of Revenue<\/a>.\u00a0 If you do not file and pay your taxes on time each year, you will incur penalties and interest on the amount of money you owe the tax entity.\u00a0 Initially, the tax entity will likely work with you to establish a payment plan for the taxes you owe.\u00a0 However, if you make no effort to contact and work with the taxing entity, do not be surprised if a lien is placed against all of the property you own or your wages are garnished through a tax levy.<\/p>\n<p align=\"left\">First, let\u2019s discuss the difference between a tax lien and a tax levy.<\/p>\n<p style=\"padding-left: 60px;\" align=\"left\">A <strong>tax lien<\/strong> is a security interest against your property.\u00a0 The IRS records a tax lien with the clerk of court in the county where you live.\u00a0 The lien is on all real and personal property you own including your house, car, bank accounts, clothing, household goods, etc.\u00a0 As a result, you will be unable to sell your home, car or other possessions without first obtaining a release from the IRS.\u00a0 In other words, the IRS will now allow you to sell your house and make a profit without being paid at least a portion of the debt that is owed to them.<\/p>\n<p style=\"padding-left: 60px;\" align=\"left\">A<strong> tax levy<\/strong> is a legal seizure of your property to satisfy a tax debt.\u00a0 With a tax levy, the IRS can seize and sell your house, car or other assets.\u00a0 They can also seize your bank accounts, retirement accounts, state tax refunds and other assets.\u00a0 They can also garnish wages.<\/p>\n<p align=\"left\">By <a title=\"NC Bankruptcy Lawyers\" href=\"https:\/\/www.duncanlawonline.com\/bankruptcy\/\" target=\"_blank\">filing bankruptcy<\/a>, you may be able to eliminate some of the tax debt and stop a wage garnishment while in an active bankruptcy.\u00a0 If you file a <a title=\"Chapter 7 Bankruptcy Lawyers\" href=\"https:\/\/www.duncanlawonline.com\/bankruptcy\/bankruptcy-types\/chapter-7-bankruptcy\/\" target=\"_blank\">Chapter 7 bankruptcy<\/a> to eliminate credit card, medical bill and other consumer debt, the wage garnishment will stop while you are in the bankruptcy but may resume once the bankruptcy is complete and if taxes are still owed.\u00a0 In certain situations, amounts owed on taxes that were due more than three year ago may be eliminated in a Chapter 7 bankruptcy.\u00a0 Unfortunately, if a tax lien is placed for the older tax years the tax debt may be eliminated BUT the lien is still in effect.\u00a0 As a result, you may still be required to pay the taxes if you sell your house or car in the future.\u00a0 As a result, <strong>you should contact the IRS and State of North Carolina and request a copy of any tax liens prior to filing bankruptcy.<\/strong><\/p>\n<p align=\"left\">You may want to consider a <a title=\"Chapter 13 Bankruptcy in North Carolina\" href=\"https:\/\/www.duncanlawonline.com\/bankruptcy\/bankruptcy-types\/chapter-13-bankruptcy\/\" target=\"_blank\">Chapter 13 bankruptcy<\/a> to restructure your tax debt and pay the taxes over the course of three to five years.\u00a0 If you decide to file bankruptcy to restructure your tax debt, it is very important you determine whether there is a tax lien before the bankruptcy is filed.\u00a0 The existence of liens will impact the amount owed in the bankruptcy and will directly impact the monthly payments in a Chapter 13 repayment plan.<\/p>\n<p>Tax liens and tax levies are the IRS\u2019 and State\u2019s way of ensuring taxes are paid by the majority of their citizens.\u00a0 If taxes are owed, it is best to work with the IRS and state proactively to avoid tax liens and levies.\u00a0 However, should you find yourself with a lien or levy, you may want to consider bankruptcy to restructure the payments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With limited exceptions, most Americans are required to file tax returns with the Internal Revenue Service, and if you work or live in North Carolina, the North Carolina Department of Revenue.\u00a0 If you do not file and pay your taxes on time each year, you will incur penalties and interest on the amount of money &#8230; <a title=\"What Is a Tax Lien and a Tax Levy?\" class=\"read-more\" href=\"https:\/\/www.duncanlawonline.com\/staging\/8350\/what-is-a-tax-lien-and-a-tax-levy\/\" aria-label=\"Read more about What Is a Tax Lien and a Tax Levy?\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4171,4168],"tags":[],"class_list":["post-5055","post","type-post","status-publish","format-standard","hentry","category-bankruptcy-basics","category-credit-and-debt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Tax Lien vs. Tax Levy | Duncan Law<\/title>\n<meta name=\"description\" content=\"A tax lien secures the IRS&#039;s claim against your property; a tax levy seizes it. Learn how NC bankruptcy can help stop collection and resolve tax debt.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.duncanlawonline.com\/what-is-a-tax-lien-and-a-tax-levy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is a Tax Lien and a Tax Levy?\" \/>\n<meta property=\"og:description\" content=\"With limited exceptions, most Americans are required to file tax returns with the Internal Revenue Service, and if you work or live in North Carolina, the\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.duncanlawonline.com\/what-is-a-tax-lien-and-a-tax-levy\/\" \/>\n<meta property=\"og:site_name\" content=\"Duncan Law\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/duncanlawonline\" \/>\n<meta property=\"article:published_time\" content=\"2012-01-20T09:00:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-07T04:40:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.duncanlawonline.com\/wp-content\/uploads\/2026\/06\/blog-general-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Damon Duncan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@DuncanLaw\" \/>\n<meta name=\"twitter:site\" content=\"@DuncanLaw\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Damon Duncan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/\"},\"author\":{\"name\":\"Damon Duncan\",\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/#\\\/schema\\\/person\\\/f7b4948225deab021c8ba0edbea00655\"},\"headline\":\"What Is a Tax Lien and a Tax Levy?\",\"datePublished\":\"2012-01-20T09:00:06+00:00\",\"dateModified\":\"2026-06-07T04:40:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/\"},\"wordCount\":595,\"publisher\":{\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.duncanlawonline.com\\\/wp-content\\\/uploads\\\/2012\\\/01\\\/Calendar-300x199.jpg\",\"articleSection\":[\"Bankruptcy Basics\",\"Credit &amp; Debt\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/\",\"url\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/\",\"name\":\"Tax Lien vs. Tax Levy | Duncan Law\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.duncanlawonline.com\\\/what-is-a-tax-lien-and-a-tax-levy\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.duncanlawonline.com\\\/wp-content\\\/uploads\\\/2012\\\/01\\\/Calendar-300x199.jpg\",\"datePublished\":\"2012-01-20T09:00:06+00:00\",\"dateModified\":\"2026-06-07T04:40:42+00:00\",\"description\":\"A tax lien secures the IRS's claim against your property; a tax levy seizes it. 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