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The Law Offices of Ralph W. Flick, P.S.
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Tax Liens
  

The Internal Revenue Code provides that when a tax is not paid, a lien automatically arises and reaches all property of the taxpayer, wherever that property is located. This gives the IRS the right to collect the tax by taking those assets. In many cases the IRS also moves to record its lien in the form of a Notice of Federal Tax Lien. This gives actual and constructive notice to all those who might purchase assets from you or loan money to you.  The filing of the lien notice is picked up by the various credit reporting agencies and winds up ruining your credit score. If you owe taxes and have been notified that a lien will be or has been filed against you, it is time to take action and we can help.

 

The Internal Revenue Code and the IRS's own procedures give taxpayers the opportunity to prevent the filing of federal tax liens if the taxpayer be proactively works with the IRS in an effective and timely manner. Failure to do so will inevitably result in the filing of lien notices in public records, after which is it very difficult to get the lien removed.

 

In many cases, after a lien has been filed, it becomes important to have the lien released, or to have certain assets removed from the effect of the lien, so that property can be sold or refinanced, or so that the taxpayer can obtain a new loan. In these cases, upon proper application with the required supporting documentation, the IRS can issue several kinds of "certificates" with respect to previously filed liens:

  • Certificate of Release: completely extinguishes the lien.

  • Certificate of Discharge: removes certain property from the lien.

  • Certificate of Subordination: relegates the lien to a lower priority.
  • Certificate of Nonattachment: clarifies the fact that a person of similar name against whom a lien is filed is not the taxpayer.
  • Certificate of Withdrawal: eliminates public notice of the lien.

 

 

 

 

 
Tax Levies
 

A levy is often the IRS's way of getting your attention. Levies are issued when repeated attempts to convince the taxpayer to make reasonable arrangements to pay the tax in installments, or to compromise it, or even to discharge it in bankruptcy, have all failed. A levy is a sign of failure on both sides. Since the 1998 IRS Restructuring and Reform Act, the IRS bends over backwards to avoid serving levies, but they will do so if you insist.

 

A levy can be used to seize your wages, commissions or other income (often called a garnishment), and to take whatever other assets the IRS can find. This may include bank accounts, IRAs, automobiles, stocks, bonds, and anything in between (including your house).

 

You have only 30 days from the date of a Final Notice of Intent to Levy to either pay the tax in full or to find another answer. Ignoring the notice, or doing nothing, will make matters much worse. Once the 30 days have passed, the IRS does not have to give any further notice before seizing assets or wages.

 

Once we are brought into the case, we can usually secure a temporary freeze on levies and other collection activity so that we will have sufficient time to analyze your situation and determine the best course of action. This might be an Offer in Compromise, an Installment Agreement, or even a bankruptcy.