State & IRS liens, levies and seizures are some of the strongest collection tools at the disposal of the government. For example, if you owe back taxes to the IRS (due to unreported income, accrued interest on unpaid taxes or income tax underpayment penalty), a tax lien automatically attaches to your personal property. This statutory tax lien is also called a “secret lien” since only the taxpayer and the IRS are aware of its existence. The IRS then sends you a tax bill or a notice of tax delinquency, which if not paid within 30 days allows the IRS to make the lien public by filing a notice in the public records. The filing of the Notice of Federal Tax Lien or Levy would severely damage your credit record and credit score which in turn would result in further financial hardship.
Under Section 6330(a) of the Tax Code, a taxpayer who receives a Notice of Lien or Levy has 30 days to request a Collection Due Process Hearing (CDP Hearing). The IRS informs the taxpayer about the Collection Due Process Hearing by sending the taxpayer a Notice of Right to CDP Hearing. The Collection Due Process Hearing is handled by the IRS Office of Appeals. During the hearing, the IRS Appeals Office will verify the taxpayer’s tax liability and other facts relevant to the impending imposition of the tax lien. At the CDP hearing, the taxpayer or an attorney who represents the taxpayer may raise any relevant issues and argue why the proposed lien or levy is unjustified.
If subsequent to the filing of the Notice of Federal Tax Lien or Levy you don’t request a CDP hearing or if you do, but the hearing officer upholds the proposed lien or levy and the tax goes unpaid, the IRS would remind you again of your tax debt and then will proceed to seize your property by initiating the tax levy process. By law, the IRS has the power to take your personal and real property. Your bank accounts may be seized (also known as bank levy or IRS bank account garnishment) and your wages may be seized or garnished.
If you have recently received a tax notice or tax bills from the IRS or from your state taxing agency, do not ignore them. These letters are only the first steps in the tax collection process, which may result in tax liens, tax levies (including a bank levy) and wage garnishments. We can assist you in responding to the IRS and state taxing authorities and preventing them from pursuing aggressive collection actions. If a lien has already been filed or the IRS is in the process of levying your property, we will work with you to obtain the release and removal of the tax lien or the tax levy. Early intervention by an experienced tax counsel is critical to preventing damage to your credit score and securing a favorable solution to your dispute with the IRS and state taxing agencies. Contact Kamyar Mehdiyoun, tax relief lawyer in Rockville, Maryland. We are a tax law firm specializing in IRS and tax problem resoltion. We will assist you in removing state and IRS tax liens, tax levies and tax seizures and will help secure a favorable resolution for your tax lien or tax levy issues.