I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. Federal Liens are a big part of the IRS’s tool kit for collecting back taxes.
If a taxpayer owes money to the IRS, there is an automatic tax lien against them, all their assets and any future assets that they might acquire. There are three prerequisites for this “silent” lien:
- The IRS must have assessed the tax liability,
- The IRS must have given the taxpayer notice of the amount assessed and has demanded payment, and
- The taxpayer has failed to pay the amount assessed within 10 days after notice and demand.
Just because this statutory lien exists, it doesn’t mean that the IRS will necessarily file a public notice to give other creditors a head’s up. If they do decide to file a Notice of Federal Tax Lien, the taxpayer will take an immediate hit on their credit rating and will receive a deluge of mail from national companies claiming that they can make a deal with the IRS for pennies on the dollar. Unfortunately, Offers-in-Compromise are formula driven and based on the taxpayer’s equity in the assets they own plus their expected future earnings rather than some superior negotiation skill.
If you receive a Notice of Federal Tax Lien, your best option is to contact the IRS and resolve the issue. Once the tax issue is resolved by either an Offer-in-Compromise, discharged, or paid off, the lien will be released, usually within 30 days.
If you or someone you know has received a Notice of Federal Tax Lien or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email firstname.lastname@example.org.
Cell (352) 317-5692
Office (352) 376-9401
Fax (352) 376-9440