Facing An IRS Tax Lien or Levy?

Contact An Experienced Tax Resolution Attorney in Dallas, TX

IRS Tax Lien Assistance in Dallas, TX

When your taxes are not paid, the Internal Revenue Service establishes a lien against all of your assets. This gives the IRS the legal right to collect taxes from your assets, which includes just about everything you own. The lien can be against you, your spouse, or your company. A lien against you and your company could and would lead to a seizure of your accounts receivables. At this point everything you own is just one short step away from becoming the property of the United States Government.

Liens give the IRS a legal claim to your property as security or payment for your tax debt.

A Notice of Federal Tax Lien may be filed only after:

  1. IRS assesses the liability;
  2. IRS sends you a Notice and Demand for Payment (a bill that tells you how much you owe in taxes);
  3. You neglect or refuse to fully pay the debt within 10 days after IRS notifies you about it.

Once these requirements are met, a lien is created for the amount of your tax debt. By filing notice of this lien, your creditors are publicly notified that we have a claim against all your property, including property you acquire after the lien was filed.

The lien attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivable, if you are an employer).

Once a lien is filed, your credit rating may be harmed. You may not be able to get a loan to buy a house or a car, get a new credit card, or sign a lease. The full amount of your lien will remain a matter of public record until it is paid in full.

Release Of The Lien

IRS will issue a Release of the Notice of Federal Tax Lien:

  • Within 30 days after you satisfy the tax due (including interest and other additions) by paying the debt or by having it adjusted (such as through an Offer In Compromise), or
  • Within 30 days after IRS accepts a bond that you submit, guaranteeing payment of the debt.

Usually 10 years after a tax is assessed, a lien releases automatically if IRS has not filed it again. The IRS would be liable to you for damages if the IRS knowingly or negligently does not release a Notice of Federal Tax Lien when it should be released.

Discharge Or Subordination Of The Lien

If you are giving up ownership of property, such as when you sell your home, you may apply for a Certificate of Discharge. Each application for a discharge of a tax lien releases the effects of the lien against one piece of property. Under certain circumstances, a third party may also request a Certificate of Discharge. If you are selling your primary residence, we can apply for a taxpayer relocation expense allowance which would allow you to retain more of your closing proceeds. Alternatively, in some cases, a federal tax lien can be made secondary to another lien. That process is called subordination. We can determine whether you would qualify for this process.

Withdrawal Of The Lien

By law, a filed notice of tax lien can be withdrawn if:

  • The notice was filed too soon or not according to IRS procedures,
  • You entered into an installment agreement to pay the debt on the notice of lien (unless the agreement provides otherwise),
  • Withdrawal will speed collecting the tax, or
  • Withdrawal would be in your best interest (as determined by the Taxpayer Advocate), and in the best interest of the government.

Appealing The Filing Of A Lien

IRS must notify you in writing not more than 5 business days after the filing of a lien. This notice is called a “Final Notice Of Filing Of Federal Tax Lien And Right To Hearing”. A timely filing within 30 days of the date on the Final Notice for a Collection Due Process hearing with the Office of Appeals, would allow us to discuss and resolve your case with an Appeals Officer. Such a filing would also suspend further collection action (such as IRS levies); however, for now the lien would remain.

Some of the issues on appeal may include:

  • You paid all you owed before IRS filed the lien,
  • IRS assessed the tax and filed the lien when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
  • IRS made a procedural error in an assessment,
  • The time to collect the tax (called the statute of limitations) expired before IRS filed the lien,
  • You did not have an opportunity to dispute the assessed liability,
  • You wish to discuss the collection options, or
  • You wish to make spousal defenses.

At the conclusion of the hearing, the Office of Appeals will issue a determination. We would then have 30 days after the determination date to bring a lawsuit in U.S. District Court to contest the determination.

If you owe taxes and have been notified of a lien being filed against you, it is time to take action. We can temporary halt these actions and can help you keep your assets and get out of trouble with the Internal Revenue Service.

IRS Tax Levies?

Our Tax Resolution Experts in Dallas Can Help With Your IRS Tax Levies

Levies are the IRS's way of getting your immediate attention. What they are saying is we have tried to communicate with you but you have ignored us. Levies are used to seize your wages (commonly referred as garnishment) and whatever other assets you have. Checking accounts, savings accounts, autos, stocks, bonds or anything else you own. If you have more in the bank than you owe then they will only take that amount to satisfy your liability leaving the rest for you.

Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt. Not only can the IRS seize and sell assets that you hold, the IRS can levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).

Before the IRS can take any of these actions, the IRS must issue a “Final Notice Of Intent To Levy And Notice Of Your Right To A Hearing” to the taxpayer allowing up to 30 days from the date of the Final Notice to pay in full or to find another solution. If the IRS levies your state tax refund, you would receive a “Notice Of Levy On Your State Tax Refund, Notice of Your Right to Hearing”. Ignoring these notices or doing nothing will only make matters worse. We can analyze your situation to find the best course of action for you and avoid the levy. Once the 30 days has passed, the IRS does not have to give any further notice before seizing your assets, including your checking accounts, savings accounts, and your wages.

A timely filing within 30 days of the date on the Final Notice for a Collection Due Process hearing with the Office of Appeals, would stop the levy and allow us to discuss and resolve your case with an Appeals Officer.

Some of the issues on appeal may include:

  • You paid all you owed before IRS sent the levy notice,
  • IRS assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
  • IRS made a procedural error in an assessment,
  • The time to collect the tax (called the statute of limitations) expired before IRS sent the levy notice,
  • You did not have an opportunity to dispute the assessed liability,
  • You wish to discuss the collection options, or
  • You wish to make a spousal defense.

At the conclusion of the hearing, the Office of Appeals will issue a determination. We would then have 30 days after the determination date to bring a lawsuit in U.S. District Court to contest the determination.

If you decide to do nothing or fail to timely file a request for a CDP Hearing, the levy will commence immediately and will end when:
  • The levy is released,
  • You pay your tax debt, or
  • The time expires for legally collecting the tax.

If the IRS levies your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This period allows the taxpayer time to solve any problems from the levy. After 21 days, the bank must send the money plus interest, if it applies, to the IRS. If the IRS made a mistake by levying your bank account and you incurred bank charges because of the erroneous levy, you may be entitled to a reimbursement from the IRS by filing a claim with the IRS within one year after your bank charged you the fee.

By engaging our services we can secure a temporary freeze on further collection activity providing us with sufficient time to analyze your situation and determine the best course of action. For many taxpayers, this could lead to an Offer in Compromise.

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