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

A tax lien is the government's legal claim against your property — it secures the IRS's interest but does not immediately take anything. A tax levy is the actual seizure of property or assets to satisfy the debt. A lien usually comes first; a levy follows if the debt remains unpaid.

Does a tax lien show up on your credit report?

Since April 2018, federal tax liens no longer appear on consumer credit reports from the three major bureaus (Equifax, Experian, TransUnion). However, a Notice of Federal Tax Lien is still a public record that appears in property title searches and mortgage applications, and can affect your ability to sell or refinance property.

What is the difference between a lien release and a lien withdrawal?

A lien release is issued when the debt is fully paid — it satisfies the lien but the public record remains visible for years. A lien withdrawal removes the Notice of Federal Tax Lien from public records entirely, as if it was never filed. A withdrawal is significantly better for your financial standing. To request a withdrawal after paying in full, use IRS Form 12277.