Rogue Valley Tax Topics: Federal Tax Liens – Part 1

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Education & Training with First Response Resolution, LLC

Rogue Valley Tax Topics: Federal Tax Liens – Part 1

Welcome to Part 1 of First Response Resolution, LLC’s discussion on Federal Tax Liens! We are a specialty tax firm located in Eagle Point Oregon and the focus of my practice is solving tax problems for individuals and businesses and representing taxpayers before the IRS and State Departments of Revenue. We offer our services online nationwide from the comfort of our client's homes and will provide services on-site to businesses in our area upon request. As we continue to post additional content, feel free to reach out with specific requests for topics that would be useful to you or your clients.

Federal Tax Liens are the government’s tool that they employ to protect their interest in the tax debts owed by American Taxpayers. The lien filed by the IRS exists from the date the tax was originally assessed. The lien applies to ALL PROPERTY that is owned by the taxpayer at the time of assessment and any property that is acquired thereafter. There is often confusion between liens and levies. Federal Tax Liens simply put creditors on notice that the government has taken their place in line in terms of collection and does not represent an actual collection activity. Any secured creditors, such as the lender that provided the mortgage, which existed prior to the effective date of the Federal Tax Lien are ahead of the Internal Revenue Service in terms of collection and will be paid the balance due upon the sale of the property before the government is entitled to collect.

Levies on the other hand are some of the actions that can be taken to collect on the debts that are owed and can take many forms. The different types of levies affect both tangible and intangible assets and include one-time levies, continuous levies, and even wage garnishments. Taxpayers will receive many IRS Notices, including the Final Notice of Intent to Levy aka Letter 1058, before any collection takes place. It is very important that taxpayers pay attention to these notices and respond appropriately to avoid having their funds taken. Taxpayers have 30 days to respond to Letter 1058 and request to exercise their rights to a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals before any levy action is taken. We strongly recommend that anyone facing these issues retain competent representation when dealing with the IRS. Our clients never have to speak with the IRS once we have accepted their case!

The purpose of this series of blog posts on Federal Tax Liens is to explain the process and the different ways in which competent tax professionals can navigate these issues while assisting taxpayers to take their lives back. If you or your clients are struggling with a lien that has been placed on their properties, contact us today! The important takeaway here is that a Federal Tax Lien does NOT need to derail the sale of a home or prevent realtors from collecting their commission. Call us at 541-293-8449 or email me directly at zach@firstresponseirs.com and we may be able to save the closing of the sale you have worked so hard on. We know how much work realtors put into selling homes in the Rogue Valley!

If you or someone you know is in the midst of an IRS issue, please feel free to contact me at either 541-293-8449, by email at zach@firstresponseirs.com, or through our website. All discussions are kept strictly confidential, and we offer no obligation initial consultations of up to one hour.

Is your agency interested in having me speak to your team of realtors in person or over Zoom at one of your weekly sales meetings free of charge? I have a presentation developed to address the following:

  1. Taxation and your clients,
  2. Tax tips for saving on your own tax returns, and
  3. Tax Problem Solutions.

Contact us today!

Posted by

Zachary A. Boutin, CPA

https://firstresponseirs.com/

zach@firstresponseirs.com

541-293-8449

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The content of our blogs are intended for INFORMATIONAL PURPOSES ONLY and are NOT to be construed as tax advice for your specific circumstances. A thorough analysis of your tax accounts and financial condition MUST be done before any reliable tax advice can be rendered on your case. Contact us today to schedule your consultation. 

Comments (1)

Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for sharing your experience and your advice.

Have a productive February.

Feb 09, 2023 10:35 AM
Zachary Boutin, CPA

Thank you for reading! I hope you are doing well and having a great year so far.

Feb 09, 2023 11:05 AM