A tax lien is a document that is filed in the county in which the taxpayer lives or lived according to IRS tax records for the last known address. It affects the credit of the taxpayer and encumbers all assets and rights over assets. Including movable and immovable property.
The federal tax lien arises when any “person” responsible for paying any federal tax fails to pay the tax after a demand for payment by the Government. IRC § 6321. For purposes of federal tax law, a “person” is defined to include individuals, trusts, estates, partnerships, associations, firms, and corporations. IRC § 7701(a)(1). The link is effective from the date on which the Government determines the tax. Therefore, if the taxpayer refuses or refuses to pay the assessed tax, the lien is considered to relate to the assessment date. IRC § 6322. The Service is not required to file a Notice of Federal Tax Lien to have the tax lien attached. As discussed later in the text, the Service can file a Notice of Linkage of Federal Taxes to have 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 bank account attachment; wage garnishment for employment, lien 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 tax by issuing a Notice of Lien.
Lien notices are used to attach equity in any assets owned by the tax debtor. These can be issued to third parties such as accounts receivable, factors, tenant income sources, bank accounts, pension funds, social security income, seizure of any other assets through the corresponding forms and approvals.
Even against bond and lien actions. There are over twenty-six types of IRS debt collection processes and procedures that are impossible to write about in one article.
You need a tax professional who has represented clients for many years in order to hire the right representation. Not all tax attorneys, CPAs, or enrolled agents want to do business with the IRS Collection or even know how to do it.
The tax debt resolution process and procedures are totally different than representing individuals or entities with audits and tax preparation. It takes years to identify the correct tax debt resolution options available to taxpayers.
When you try 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 tax lien listings to secure customers. However, these companies do not inform the client that they will not initiate any representation until the retainer fees are paid in full. Also, some are nothing more than scams. BE CAREFUL who you hire.
You can go to Google and find the Internal Revenue Manual Collection Part 5 and see the table of contents. This will provide the list of all the processes and procedures that the IRS takes to resolve tax debtor cases. Which one is right for you?