A tax lien is a document that is recorded in the county in which the taxpayer lives or lived according to the IRS tax records of the last known address. Affects the taxpayer’s credit and encumbers all assets and rights over assets. Including movable and immovable property.
The federal tax lien arises when any “person” responsible for paying any federal tax fails to pay the tax after a demand for payment by the Government. IRC § 6321. For purposes of federal tax law, a “person” is defined to include individuals, trusts, estates, partnerships, associations, businesses, and corporations. IRC §7701(a)(1). The link is effective from the date the Government determines the tax. Therefore, if the taxpayer fails or refuses to pay the assessed tax, the lien is considered to relate to the date of the assessment. IRC § 6322. The Service is not required to file a Notice of Federal Tax Lien in order for the tax lien to be attached. As discussed later in the text, the Service can file a Notice of Linking Federal Taxes to have priority over the other creditors of the taxpayer.
A lien is a document that is issued to a source of income or any entity that has rights to your real or personal property.
For example, bank for bank account attachment; wage garnishment to employ, levy for seizure of vehicles, equipment, real estate, business assets.
Section § 6331 within Title 26 of the US Code defines the ability of the IRS to collect taxes by issuing a Notice of Levy.
Lien notices are used to attach to the equity in any assets owned by the tax debtor. These can be issued to third parties such as accounts receivable, factors, tenant income sources, bank accounts, pension funds, social security income, seizure of any other assets through the corresponding forms and approvals.
Even against bond and encumbrance actions. There are more than twenty-six types of IRS debt collection processes and procedures that it is impossible to write in an article.
You need a tax professional who has represented clients for many years in order to hire the right representation. Not all tax attorneys, certified public accountants, or enrolled agents want to deal with IRS Collection or even know how to do it.
The tax debt resolution process and procedures are totally different than representing individuals or entities with audits and tax preparation. It takes years to identify the correct tax debt resolution options available to taxpayers.
When trying to hire, make sure you don’t hire what is known within the IRS as a tax collection factory. There are so many companies that hire salespeople to call tax lien lists to secure clients. However, these companies do not inform the client that they will not initiate any representation until the retainer fees are paid in full. Also, some are nothing more than scams. Be careful who you hire.
You can go to Google and find the Internal Revenue Manual Collection Part 5 and see the table of contents. This will provide the list of all the processes and procedures that the IRS takes to resolve the cases of tax debtors. Which one is right for you?