What Is a Federal Tax Lien?
A federal tax lien is a public notice that a taxpayer owes the IRS tax debt. The IRS issues federal tax liens and notifies you via Letter 3172. The filing of the Federal Tax Lien protects and governments interest.
There are ways to avoid the Federal Tax Lien filing and you should contact Fresh Start Tax as the filing of the Federal Tax Lien will be a problem.
IRS Fact:
There were nearly a million notices of Federal tax liens filed in 2009. That was a 23% increase from the year before.
That number is expected to jump another 30% for this fiscal year. See our National Press Release. It is on the Fresh Start Tax website.
- The IRS reserves the right to file a tax lien on any individual or business who has a balance due. If a taxpayer owes over $5000, the IRS will usually file the Federal Tax Lien.
- A Federal Tax Lien can be filed if you neglect to pay the balance due 30 days after you are notified of the debt by the IRS. Usually, these notices are sent certified to your last known address.
- A tax lien acts as security for the tax debt and attaches to all real and personal property owned at the time of assessment and to any property acquired after the date of assessment.
- A federal tax lien is different from a federal tax levy. A levy, 668A or 668W, is a seizure of an asset, meaning that the IRS is actively taking and applying money towards the tax debt. Usually, levies of this kind can be released by calling the IRS and giving the IRS the information they are looking for.
- Federal Tax Liens are filed at your local county courthouse. In case of businesses, they are filed at the State seat.
Fact: A Federal Tax Lien will have a very negative effect on your credit score.
This can affect your ability to buy a house or car, get a credit card, or even sign a lease. Only a release of federal tax lien will completely clear up your credit report.
For an immediate release of the Federal Tax Lien, a cashiers check will be required.
Usually the IRS does not remove liens from a taxpayers account until the balance is paid in full or it expires (usually 10 years after the tax is assessed.)
However, there are special circumstances that could result in the liens removal or subordination.
Call Fresh Start Tax and see if we can help you through this process.
Our Company Resume:
- Our staff has over 110 years of professional tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
- Highest Rating by the Better Business Bureau ” A “
- Extremely ethical and moral principles used
- Fast, affordable, and economical
- Licensed to practice in all 50 States
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- Nationally Recognized Veteran Former IRS Agent
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Fresh Start Tax is one of the premier tax resolutions firms in the country. We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations. We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies. Some of our many specialties include the following:
- Immediate Tax Representation
- Offers in Compromise/Settlements
- Back Tax Relief
- Bank Garnishments or Tax Levies
- Wages Garnishments or Levies
- IRS Notices of Intent to Levy or Final Notices
- IRS Tax Audits
- Hardships Cases, Payment Plans
- Innocent Spouse
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/ 6672
