Liens
A federal tax lien may arise shortly after the IRS makes an assessment of your tax owed, and sends a demand for payment. A Notice of Federal Tax Lien lets your creditors know the IRS has a claim against all your property – including property you may purchase in the future. Once the lien takes effect, the IRS generally will not release it until all taxes, penalties and fees are paid in full. But there are actions you can take. If you contact us immediately, we may be able to file an appeal with the IRS and have your lien reconsidered. Our tax experts will also thoroughly examine your situation to see if you qualify for a penalty reduction. We can also find out whether the Statute of Limitations has expired, or if your finances allow you to file as Currently Not Collectible. Failing these options, we will diligently work to set up a payment plan with the IRS that you can live with, and get the lien revoked.
Levies and Seizures
Levies and liens are often confused, but they are actually quite different. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy involves actually seizing property to pay the tax debt. If you don’t pay or make arrangements to settle your tax liability the IRS can levy, seize and sell any type of personal property that you own or have an interest in. Even your retirement accounts and home are fair game. If you have received a Notice of Intent to Levy, please contact us immediately. There is a brief time period when we may be able to appeal the process and negotiate a workable payment plan before the levy takes effect. Levies typically target specific assets; here is a summary of the most common levy types.