IRS Liens and Levies

Not paying your income, trust, corporate or other IRS taxes is serious. And the IRS resorts to actions that protect their ability to collect the taxes using liens and levies. Have you received a notice that reads “NOTICE OF FEDERAL TAX LIEN?”

What will happen?

What is a Lien?

A lien is a means to secure a debtors interest in the event of default on payment of the debt. Most people already have at least one lien; a lien put on your home by the bank that has financed your mortgage. All liens become public record.

If you now have a tax lien on your personal assets (maybe business assets), historically you ignored many IRS payment notices and have outstanding taxes owed. And the taxes have to be paid in full by a due date.

In the future, the IRS will then levy your assets. You will receive a notice which reads:

“NOTICE OF INTENT TO SEIZE (LEVY) YOUR PROPERTY OR RIGHTS TO PROPERTY” – OR- “CALL IMMEDIATELY TO PREVENT PROPERTY LOSS. FINAL NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING.”

At this point you are facing a Levy of assets. A Levy means the IRS is preparing to notify banks to send any money they have received on your behalf to them. Confiscations of other assets include trucks, vehicles, and anything with a resale value on the market. If you own a business, the IRS will also contact customers and vendors and have “your money” sent to them instead.

The list available for confiscation is:

  • Bank Accounts
  • Wages (A Wage Levy may be implemented.)
  • Retirement Accounts
  • Dividend or Interest Income
  • Rental Income
  • Cash value in a Life Insurance Policy
  • Property such as a building, home, or car

But, again, to have the IRS resort to this action, you have ignored tax notices, lien notices and possibly ignored a Revenue Officer that came to your door. Do you want the IRS to walk away with your assets and leave you with little to live on?

Liens and levies are time-sensitive, which means specific dates for action are referred to in the notices. We must act before the deadlines.

How can we assist you when you receive a lien or levy notice?

  • We will clearly explain to you what happened and what will happen.
  • We will analyze historically the basis for the lien or levy. Can we find anywhere that the IRS may be wrong or have incorrect information? Are they missing returns?
  • We will contact the IRS and stop the levy and request “time” to resolve the issue. Such resolutions include the discussion at IRS Tax Payment Plans. We will meet with a Revenue Officer if required.

We will do everything we can to allow you to live as normal as you can under these circumstances.

Call Christy at 586-323-2360 to start discussing how we can assist you.

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