Taxpayers with tax problems invite the IRS to file a notice of federal tax lien. A tax problem is usually building momentum prior to the IRS properly recording the federal tax lien. Taxpayers owing the IRS back taxes and with no ability to pay in full should know that they have options to settle their back tax debt with the IRS, hence resolving their tax problem and moving on with their lives.
The IRS will pursue individual and business taxpayers with tax problems by issuing a notice of a federal tax lien that must be filed in the one office designated by the state in which the property is situated. Generally, personal property is situated in the state where the taxpayer resides (rather than where domiciled); for real property, the situs is its physical location. If, in the case of either real or personal property, the state designates more than one office or does not designate an office where notice must be filed, notice of the lien must be filed with the Clerk of the U.S. District Court for the district in which the property is situated. If state law provides that a notice of lien affecting personal property must be filed in the county clerk's office located in the taxpayer's county of residence and also adopts a federal law that requires a notice of lien to be filed in another location in order to attach to a specific type of property, the state is deemed to have designated only one office for the filing of the notice. Thus, to protect its lien, the IRS need only file its notice in the county clerk's office located in the taxpayer's home county (Reg. §301.6323(f)-1(a)(2)). Notice regarding property located in the District of Columbia is filed with the Recorder of Deeds of the District of Columbia. Special rules apply in a state that requires public indexing for priority liens against realty.
The IRS will continue its enforcement actions, including assessing additional interest and penalties until the taxpayer addresses their tax problem with a satisfactory resolution. Individual taxpayers should expect an IRS tax levy on their bank accounts, and garnishment on their paychecks; business taxpayers should expect the IRS to levy their bank accounts including payroll accounts, accounts receivable and other enforcement actions to resolve their tax problem.
The IRS may not levy against property while a taxpayer has a pending offer in compromise or installment agreement (Code Sec. 6331(k)). If the offer in compromise or installment agreement is ultimately rejected, the levy prohibition remains in effect for 30 days after the rejection and during the pendency of any appeal of the rejection, providing the appeal is filed within 30 days of the rejection. No levy may be made while the installment agreement is in effect. If the installment agreement is terminated by the IRS, no levy may be made for 30 days after the termination and during the pendency of any appeal.
Mike Habib EA urges taxpayers with tax problems to contact him as quick as possible, if you have received a final notice of levy; you have appeal rights that you should not ignore. Mike Habib EA has solutions to your tax problem. Call him today at 1-877-788-2937.
Tax problem help is offered in all 50 states including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.