Liens & Levies

A general federal tax lien arises after 3 requirements have been met by the IRS: (1) assessment, (2) demand for payment, and (3) non-payment by the taxpayer. After the IRS makes a demand for payment, the taxpayer has ten days to pay. If the taxpayer fails to pay, then the lien becomes effective on the date of assessment and attaches to the property (or property rights) that the taxpayer owns on the assessment date. A lien can also be attached to any property the taxpayer acquires after the assessment date.
Whether a taxpayer "owns" property or property rights is a matter of state law. The IRS is permitted, on 30 days' notice, to levy on, or seize, the taxpayer's property.

The IRS has a series of letters it mails to delinquent taxpayers. These are computer generated and increase in intensity and demand. If you fail to respond or provide for payment you will eventually get a Final Notice of Intent to File a Lien and if unanswered this is usually followed by a Final Notice of Intent to Levy.” It is important the taxpayer not ignore these letters. By ignoring them you forego and forfeit certain rights of appeal. See Collection Due Process. In some instances a timely appeal will permit you to settle your tax problem without filing an Offer In Compromise and at a much earlier date.

Also in the event a lien and levy are filed they may not be removed from your records, even if an Offer in Compromise is subsequently accepted, until after full payment. Hence they will impact your credit even though the IRS has no further intention of acting upon them. Remember it is always best to resolve IRS tax problems at the first available opportunity not the last as with an Offer In Compromise.

Contact us now so that we may discuss the IRS letters with you. In order to facilitate in resolving your tax problems complete the Assistance Form or E-mail: gcoulter@gctaxlawyer.com or phone us at: 1.888.5TAXLAW or 1.706.546.9755. You can also complete the Form 2848, Power of Attorney in order for us to start now on your tax solution!