When a taxpayer fails to pay back taxes, the IRS may issue a Notice of Federal Tax Lien (“NFTL”) or a Notice of Intent to Levy. An NFTL, also known as a federal tax lien, is the government’s legal claim against your property when you neglect or fail to pay a tax debt. A lien attaches to all your assets (property, life insurance policies and other securities, vehicles) and to future assets you may acquire in the county in which it is filed while the lien is in place. Once the IRS files a federal tax lien, it may limit your ability to get credit.
We can assist you in avoiding federal tax liens using an infrequently-used tool known as a CAP Appeal (form 9423). We can also work with you to have federal tax liens withdrawn even if you still owe money to the IRS.
An IRS levy is a legal seizure of your property to satisfy a tax debt. While a lien is a legal claim against your property to secure payment, in the case of a levy, the IRS will physically take possession of your property and any assets you own or have an interest in to satisfy your outstanding tax debt. This can include garnishing your wages, bank and retirement accounts, licenses, rental income, the cash loan value of your life insurance, as well as seizing and selling property you own such as cars, boats, or houses.
If you receive a Notice of Intent to Levy, immediate action is required. Such notices should not be ignored, and actual levies of assets can be avoided. We can assist you to avoid such actions.