Is your Federal Tax Lien Wrong? Appeal it now!

October 22, 2010
Written by: steve

Most people have no idea that they can Appeal the Federal Tax Lien. There are certain criteria required.
Here is the process of  Appealing the Filing of a Lien
The Internal Revenue Services IRM requires that the Service  notify you in writing not more than 5 business days after the filing of the Federal Tax Lien.  The IRS has options on how this notification takes place. The Internal Revenue Service can give you this notice in person, leave it at your home or your usual place of business, or send it by certified or registered mail to your last known address.
You may want to ask an IRS Revenue Officer or the Local  Manager to review your case to see how this process took place. You  have the option of requesting a Collection Due Process hearing with the Office of Appeals by filing a request for a hearing with the Internal Revenue Service office listed on your notice. Feel free to ask the local office for documentation.
You must file your request  ( CDP ) to the IRS  by the date shown on your notice. Some of the issues you may discuss include:
1. If you paid all you owed to the IRS before the IRS filed the lien,
2. The IRS assessed the federal tax and filed the lien when you were in bankruptcy, and/or subject to the automatic stay during bankruptcy,
3. The IRS made a procedural error in the tax assessment,
4. The time to collect the tax, called the statute of limitations, expired before we filed the lien. The normal statute of limitation period is 10 years from the date of assessment. If your tax return was adjusted or audited, it would be ten years from the date of the later tax assessment date,
5. You were not given the opportunity to dispute the assessed tax liability,
6. You wish to make spousal defenses. The Innocent spouse process may be available to you.
The IRS Collection Due Process Hearings Officer will issue a determination letter on the appealed case. That determination may support the continued existence of the filed federal tax lien ( FTL ) or it may determine that the federal tax lien should be released or withdrawn. If you disagree with the IRS Appeal’s determination, there is a 30-day period starting with the date of determination, in which you may request judicial review in a court of proper jurisdiction. The start date of the 30 days is based strictly on the date of the notice letter.

Filed Under: IRS Tax Advice
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