Why IRS Levies are Important to Understand

As a lender, Payplant understands that IRS issues can sometimes arise for a small business. In an article we found interesting, a small business owner can learn about how a lender looks at tax liabilities during the application process. The author also does a nice job of discussing the difference between an IRS Lien versus a Levy; “a lien is a legal claim against property to secure payment of a tax debt, while a levy actually takes the property to satisfy the tax debt.” The reality is that IRS Levies of physical property are not terribly common because they are an inefficient way anyone to collect on a debt. Typically, the IRS and any lender for that matter, will levy cash and cash equivalents.