What is the difference between a tax lien and a tax levy?

A tax lien and a tax levy are both actions taken by the IRS to collect unpaid taxes, but they differ in terms of their effect and timing. A tax lien is a legal claim against the taxpayer's property, including real estate, personal assets, and financial accounts. It establishes the IRS's right to the taxpayer's properties until the tax debt is paid off. A tax levy, on the other hand, is the actual seizure of the taxpayer's property to satisfy the tax debt. It allows the IRS to take physical possession of assets, such as bank accounts, wages, or real estate, and sell them to pay off the unpaid taxes. In summary, a tax lien is a claim, while a tax levy is the enforcement action that leads to the seizure and sale of property.