Tax Lien Lawyers

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What Is a Tax Lien?

A tax lien is a claim by the Internal Revenue Service against a debtor's property or funds for failure to pay income taxes. When a person does not pay their taxes the I.R.S. may attempt to recover the money owed in taxes by placing a lien on the person's home, car, bank account, wages, or other property. The I.R.S. will then use a levy to sell the seized property at auction in order to recover the tax debts.

How Should I Respond to the IRS’s Action?

If you receive a “Notice of Intent to Levy,” you should respond within thirty days of receiving the notice. Your responding statement should include:

  1. Complete history of the incident
  2. Complete tax payment history of the debtor
  3. Why compliance with tax code was not met
  4. Witnesses, documentation or any other evidence which could prove the circumstances you describe
  5. Your exact reason for failure to comply

Forms of Tax Settlement

The I.R.S. has several methods of working with debtors to reach a solution. Forms of tax settlements include:

Bankruptcy and Tax Liens

If a debtor successfully files for bankruptcy the I.R.S. will have to drop their tax lien against the bankrupt debtor. However, once the debtor emerges from bankruptcy the I.R.S. may be able to place a new lien on the debtor's property, so contact an attorney if you are faced with a tax lien and are considering bankruptcy.

Why Won’t the IRS Accept My Reason for Failure to Comply?

The IRS examines the debtor’s entire tax history and the reasons provided for not paying very carefully. If the IRS determines that something in the debtor’s information doesn’t add up, like out of sync timelines or a debtor history filled with tax evasion, than the IRS may reject any justifications and offers of negotiations.

In general, the IRS expects that all citizens pay their share and holds each citizen to those standards. Thus, the following reasons are not accepted by the IRS: 

Can an Agency Other Than the IRS Place a Tax Lien?

Yes. Although the Internal Revenue Service is the organization most likely to use tax liens, the IRS isn’t the only agency capable of placing tax liens on debtors. State and county tax collection agencies may also invoke the same powers as their federal counterpart. Although the procedures may differ from state to state, you should follow the same guidelines when dealing with state and local agencies.

Do I Need a Tax Lien Lawyer for My Tax Problem?

Taxation problems contain many complicated legal issues. If you are faced with a tax lien or another tax issue, then a tax lien lawyer can help guide you through the process and make sure your rights are protected.

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Last Modified: 01-04-2016 01:46 PM PST

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