Payroll Tax Liens & Levies

Not paying your employee’s payroll taxes to the IRS or the State is a serious offense. As mentioned in Small Business Payroll Tax Problems, the government agencies do not take this lightly. Due to this, all government agencies resort to actions that protect their ability to collect the taxes. Each agency’s steps for when a lien is filed are different. For instance, 18 months of non-payment of payroll taxes to the IRS triggers a lien.

Have you seen a notice that reads “NOTICE OF FEDERAL TAX LIEN?” Do you know what just happened to you and your business?

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. In this case, a payroll tax lien will go against the assets of your business, even receivables. The lien becomes public record.

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

In the future, if you ignore the lien, the agencies 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 and a potential seizure which is discussed at Payroll Tax Seizures.

A levy means the agency is notifying the banks, credit card companies, vendors and customers to send any money they have received on your behalf to the agency. Confiscation of other assets as trucks, vehicles, and anything with a resale value on the market may be picked-up and taken.

The list looked at for confiscation is:

  • Business bank accounts
  • Wages of the company officers
  • Retirement Accounts of the company officers
  • Dividends
  • Rental Income
  • Accounts Receivable
  • Cash value in a Life Insurance Policy
  • Property such as a building, home, or car
  • And more…

But, again, to have the agency resort to this action, you have ignored tax notices, lien notices and possibly ignored a Revenue Officer that came to your door.

Liens and levies are VERY serious. Do you want the agencies to walk away with your assets and leave you with little to operate your business, let alone live on?

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 agencies may be wrong or have incorrect information?
  • We will contact the agencies and stop the levy and request “time” to resolve the issue. Such resolutions include the discussion at Payroll Tax Payment Plans.
  • We will meet with all Officers as required.

We will do everything we can to allow you and your business to continue normal operations.

What are you waiting for? Call Christy at 586-323-2360.

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