A tax lien is a document that is filed with the county in which the taxpayer lives or lived according to the IRS tax records of the last known address. It affects the credit of a taxpayer and taxes all assets and rights over the assets. Including movable and immovable property.
The federal tax lien arises when any “person” required to pay any federal tax fails to pay the tax after a request for payment from the Government. IRC § 6321. For purposes of federal tax law, a “person” is defined to include individuals, trusts, estates, partnerships, associations, companies, and corporations. IRC § 7701 (a) (1). The levy is effective from the date the Government evaluates the tax. Therefore, if the taxpayer neglects or refuses to pay the assessed tax, the link is considered to be related to the assessment date. IRC § 6322. The Service is not required to submit a Federal Tax Lien Notice for the tax link to be attached. As explained later in the text, the Service may file a Notice of Federal Tax Lien to take 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 personal or real property.
For example, bank to attach a bank account; Garnishment of wages to the employer, garnishment 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 Garnishment.
Lien notifications are used to attach to the equity of any asset owned by the tax debtor. These can be issued to third parties such as accounts receivable, factors, sources of income of the lessee, bank accounts, pension funds, income from social security, seizure of any other asset through the corresponding forms and approvals.
Even when facing embargo and enforcement actions. There are more than 26 types of IRS debt collection processes and procedures that are impossible to write about in an article.
You need a tax professional who has represented clients for many years to hire the right representation. Not all registered tax attorneys, CPAs, or agents want to negotiate with IRS levy or even know how to do it.
The tax debt resolution process and procedures is totally different from representing individuals or entities with audits and tax preparation. It takes years to identify the correct tax debt resolution options available to taxpayers.
When attempting to hire, be sure not to hire what is known within the IRS as a tax collection factory. There are so many companies that hire salespeople to call up tax lien lists to assure clients. However, these companies do not inform the client that they will not initiate any representation until the advance fees are paid in full. Also, some are nothing more than scams. BE CAREFUL with who you hire.
You can go to Google and search the collection for Part 5 of the Internal Revenue Handbook and see the table of contents. This will provide the list of all the processes and procedures that the IRS carries out to resolve tax debtor cases. Which one is right for you?