A federal tax lien is a public record filed with your county government that notifies all other creditors that you owe money to the federal government. The lien protects the government’s interest in all of your property, including real estate, personal property and financial assets.
A federal tax lien will be issued if you are notified by the Internal Revenue Service (IRS) that you owe more than $10,000 and you neglect or refuse to pay your debt in time. The IRS may also issue a federal tax lien amounts.
A tax lien can destroy your credit score, prevent you from purchasing or refinancing your house, and even cause you to lose your job.
There are only four ways to have a federal tax lien released:
- Pay your past-due tax bill in full.
- Submit an acceptable Offer in Compromise and meet all of its terms.
- Let the statute expire (this takes 10 years).
- If the lien was filed by mistake, file an administrative claim with the Internal Revenue Service requesting that the lien be removed.
If you have received a notice of an impending federal tax lien, it’s past time to take notice and take action. You should contact Michael T Napolitano, an experienced Cranston IRS tax lien attorney, immediately.
Don’t Fight IRS Tax Levies Alone
A tax levy is a legal seizure of your property to satisfy a tax debt. The Internal Revenue Service (IRS) may service a notice of levy upon your employer to garnish your wages or upon your bank to attack any funds you have deposited. The IRS may seize an asset such as a vehicle, a business or even a home.
Under the law, you get to keep a small percentage of your wages while the rest is turned over to the IRS. The amount you keep is based upon your filing status and the number of exemptions you may claim on your tax return.
By law, some property cannot be levied or seized. The IRS can only levy property that they have determined will produce net proceeds to apply to your liability. In addition, the IRS may not levy your property on the day you attend a collection interview in response to a summons.
A bank levy is very different. It attacks only the money in the account at the moment the levy is received by your bank. You have 21 days to work out an agreement with the IRS.
You may appeal before or after the IRS places a levy on your wages, bank account or other property. The IRS may lift wage garnishment if your wages were levied while you were in bankruptcy, if you did not receive the proper IRS notices or if you are seeking innocent spousal relief.
We solve tax problems for individuals and businesses. Schedule a free consultation with our knowledgeable tax lien lawyer by calling 800-626-0608 or using our contact form on this website.