A claim, not a seizure
The IRS describes the difference simply: a lien secures the government's interest in your property, while a levy actually takes it. A federal tax lien generally arises when an assessed tax goes unpaid after the IRS demands payment, and it reaches property you own now as well as property you acquire later. New York State collects differently in form but with a similar effect, typically by filing a tax warrant that acts much like a judgment against you. Business owners can face liens for unpaid payroll or sales taxes, sometimes personally. Nothing is taken from your accounts by a lien alone, but it often stands in the way of selling, borrowing, or closing on property.
Documents that tell us where you stand
Bring every notice from the IRS or the New York State Department of Taxation and Finance, in date order, including envelopes if the dates are unclear. Account transcripts show which tax periods are assessed and how much is attributed to each, and they often differ from what people remember owing. If a sale or refinance is pending, bring the title report or the payoff request from the closing attorney. Note any returns that were never filed, because unfiled years tend to shape which resolutions are available. Records of payments you made, including through a payroll provider, help check whether the balance is right.
Ways a lien gets resolved or worked around
Paying the balance in full leads to a release, but that is far from the only route. In many matters the more practical question is whether the lien can be lifted from one specific property so a transaction can go forward, or whether another lender can be allowed to go ahead of it. A payment plan or another resolution of the underlying debt may also change how the lien is handled. In a first conversation we confirm what is actually assessed, identify whether the issue is federal, state, or both, and look at what a deadline in your transaction means for the order of steps.
