In order to stop an IRS Lien, do I need a Tax Attorney?

What is a Tax Lien vs. a Tax Levy?

A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. This would be similar to a mortgage on your home. A levy actually takes property, more commonly money, to pay the tax debt. This would be similar to a wage garnishment. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in. The most common use of a levy is on a bank account or wages.

We have been assisting taxpayers with tax problems related to stopping IRS tax liens for a number of years. During that time, we have developed a few strategies that we commonly use.

No Income, No Assets, No Problem

If you have little to no income and no assets to speak of, then you are in a perfect position to negotiate with the IRS. We would review your financials and fill out the IRS disclosure form applicable to your situation. The IRS has standard allowances for each category of expenses, such as food, auto, housing, etc. These standard amounts vary by zip code. If you meet a few criteria, then we would get your account put in Currently Not Collectible (CNC) status. This status will be good for two (2) years. After that time, the IRS will contact you to review your current financial situation. The lien would remain in place, but the collection actions would cease.

What is a Federal Tax Lien?

An IRS Federal Tax Lien is a legal claim asserted against a taxpayer’s assets in an attempt to collect unpaid taxes. The IRS Letter 3172, Notice of Federal Tax Lien and Right to a Hearing, is sent to the taxpayer to establish public notice to all creditors that the IRS has a claim against all your current property and any property you acquire or are entitled to after the tax lien is filed. The IRS Federal Tax Lien will remain a matter of public record until paid in full, and a satisfaction is recorded in public record. The IRS has collection policies which require a tax professional to negotiate a solution which is a budget-wise and equitable arrangement that you and your family can predictably live up to.

Different ways to Release or Remove a Federal Tax Lien

1) By paying the past due tax in full
2) By a successful Offer in Compromise and fulfilling the terms in full with all payments
3) By having the ten year statue expire;
4)If the Federal Tax Lien was filed mistakenly, file an administrative claim with the Internal Revenue Service to have it removed.

Contact us to Stop an IRS Lien Today