The TaxMan TV series began as a way to explain IRS practices and tax relief solutions so those who need tax help can understand there is a solution to their tax debt issue. With statistics that show 26 million taxpayers facing tax problems in this country, an easy-to-understand video resource library explaining IRS protocols, seemed necessary. Thankfully, what started as an idea over a year ago has now grown to a national network television show and I am proud to announce that this week, the 14th episode of TaxMan has just been added to the series.
The goal of the new episode is to help taxpayers have a better understanding of what they should do when IRS tax problems occur. The topic of this episode: tax liens and tax levies and the differences between the two collection activities. (Below the video I explain how to best take care of tax levies and liens issues and NOT ignore them!)
What is an IRS lien?
The IRS files a tax lien when their notices go ignored by the taxpayer. The IRS does not like to be ignored and will use a lien to enforce collection for back taxes owed. A tax lien is a general indication of unresolved IRS debt. Here are five important points for you to know about tax liens:
- Liens are filed by the IRS with the county recorder in the state you live announcing the IRS is holding your property for collateral for IRS tax debt.
- A lien is public record and will shows up on credit reports and real estate transactions.
- A liens can prohibit the sale or transfer of property without a clear title.
- A lien can make it impossible to borrow against you property due to your inability to get a loan.
- A lien can wreak havoc for people whose employment requires special licenses or security clearance as these credentials could be revoked and affect their ability to earn an income.
What is an IRS Levy?
An IRS levy is the physical seizure of property by the IRS for collection of back taxes that can include bank accounts, wages and all sources of income and assets including your car and home. An IRS levy is generally the result of bad communication between the IRS and the taxpayer.
When the IRS decides to take collection action, it’s generally they have sent you (and you ignored) at least 5 notices – the last two are legal documents sent by certified mail. Tax liens and levies are to be avoided at all costs – the good news is that they are preventable!
If You Have Received an IRS Collection Notice, Listen Up – Every IRS notice requires a specific response so do not ignore these notices. However, there are instances where the correct response is “not to respond” so you will need to hire a qualified tax expert to determine which notice that response refers to.
Continuing to Ignore an IRS Collection Notice is a Bad Strategy – It signifies that you don’t care if you ever own anything again because that is what will happen if the IRS has its way. The better strategy is to contact an expert tax attorney or Certified Tax Resolution Specialist immediately to help you unravel this mess by 1) helping you by file an IRS collection appeal to remove your tax lien, especially if there’s a levy and, 2) negotiate an IRS Payment Plan that can get you back on track help you resolve your IRS problems for good. But act quickly if you want your financial freedom to remain intact.
More Tax Help, IRS News and Tax Relief Tips:
- Offer in Compromise: How to Get the Tax Help You Need Through an IRS Offer in Compromise
- Tax Relief FAQ: What Is Worker Misclassification And How Is It Determined by IRS Business Audits?
- Glenn Beck Endorses Tax Defense Partners on GBTV
- Back Tax Help-How Long to Keep IRS Records
- The Tax Man Gives a Tour of Tax Resolution Services