What about IRS Liens?

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS. IRS Liens are a big part of the IRS Collection Division’s tool kit for collecting back taxes. If a taxpayer owes money to the IRS, there is an automatic tax lien against them, all of their assets, and any future assets that they might acquire.

What the IRS Must Do

    There are three prerequisites to create this “silent” lien:

  1. The IRS must have assessed the tax liability,
  2. The IRS must have given the taxpayer notice of the amount assessed and has demanded payment, and
  3. The taxpayer has failed to pay the amount assessed within 10 days after notice and demand.

Public Notice

These silent liens are not a big problem. But, when the IRS goes public your life cam become miserable in a hurry. They do this by filing a Notice of Federal Tax Lien at the courthouse where you own real estate. The result is an immediate hit on your credit rating. Additionally, you will receive a deluge of mail from national companies claiming that they can make a deal with the IRS for pennies on the dollar. Unfortunately, Offers-in-Compromise to minimize the debt are formula driven. This formula considers the taxpayer’s equity in the assets they own plus their expected future earnings. Superior negotiation skills has very little to do with it.

What to Do

If you receive a Notice of Federal Tax Lien, your best option is to contact the IRS and resolve the issue. Resolution will come in the form of an Offer-in-Compromise or a payoff. It usually takes the IRS a minimum 30 days to issue the lien release.

If you or someone you know has received a Notice of Federal Tax Lien or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email jim@taxrepgainesville.com.

Author: Jim Payne

Jim Payne, a Florida Certified Public Accountant (CPA) since 1976, offers candid insights on getting square with the IRS — with the least pain, and at the lowest cost — with (or without) the help of a tax representative. Mr. Payne is a former IRS agent and expert in business profitability, IRS audits, IRS payroll tax, and IRS non-filer issues. As a Tax Representative, his goal is clear: " I will speak on your behalf to all IRS agents, so you never have to, and I'll guide you in executing a strategy to resolve your IRS problem so you can get back to enjoying life."

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