IRS Tax Lien
Are you looking for help with your IRS tax lien? Getting help with your IRS tax liens is just a phone call away. Our trusted tax lawyers have years of experience helping taxpayers address their IRS tax liens. Contact us today for a free IRS tax lien analysis by calling 1-888-TAX-LADY or by using our contact form.
Federal Tax Liens
The IRS may file a federal tax lien if a taxpayer owes back taxes. According to the Internal Revenue Code, Section 6321, “[i]f any person liable to pay any tax neglects or refuses to pay the same after demand, the amount including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition there to, shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person.” The IRS files tax liens to assist in its efforts to collect the taxes owed. A lien gives the IRS a legal claim to your property as security or payment for the tax liability.
Difference Between a Tax Lien and a Tax Levy
Many people don’t understand the difference between the terms “tax levy” and “tax liens.” Oftentimes they confuse a Notice of Intent to Levy with a Notice of Federal Tax Lien. Although these two terms are both related to the Internal Revenue Service’s (IRS) collection of back tax liabilities, they each represent different parts of the tax debt collection process. Essentially an IRS tax lien is the federal government’s statutory right that allows them to secure payment of a tax, and a federal tax levy is the actual seizure of property.
Notice of Federal Tax Lien
A federal tax lien gives the Internal Revenue Service (IRS) a legal claim to a taxpayer’s property as security or payment for a federal tax debt. A Notice of Federal Tax Lien may be filed only after: the IRS has assessed a liability, the IRS has sent a Notice and Demand for Payment – a bill telling how much a taxpayer you owe in back tax debts – and the taxpayer neglects or refuses to fully pay the debt within 10 days after notification.
Releasing a Tax Lien
The Internal Revenue Service (IRS) will issue a Release of the Notice of Federal Tax Lien: within 30 days after a taxpayer satisfy their tax liabilities (including interest and other additions) by paying the debt or by having it adjusted, or within 30 days after the IRS accepts a bond submitted by the taxpayer, guaranteeing payment of the debt.
Appealing the Filing of a Lien
The law requires the IRS to notify a taxpayer in writing not more than 5 business days after the filing of a tax lien. The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it by certified or registered mail to your last known address. You may ask an IRS manager to review your case, and you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a hearing with the office listed on your notice. You must file your request by the date shown on your notice.
