Federal Tax Liens are bad, but not as bad as a federal tax levy. When your taxes are not paid, the IRS can file a lien against your assets (especially real estate) in your County Courthouse. You still own the asset. You still can rent it. But you cannot sell it without paying off the IRS. A Levy, on the other hand, means they can come into your bank account and take your money.
The lien can be against you, your spouse, or your company. Since a federal law was passed in 2017, liens no longer appear on your credit report, but liens can still affect your credit to a degree.
When the lien is made a matter of public record, you should get a Notice of Federal Tax Lien and Your Right to a Hearing. Now, if you have gotten to this point on the collection process, you should have long since contacted a firm with a team of EAs, CPAs, and Tax Attorneys which handles these matters. At this point, it is urgent you contact a trusted EA or CPA or attorney, such as the EAs and CPAs or Tax Attorneys at Torchlight Tax.
A request for a Collection Due Process Hearing submitting timely stops the collection process until the Hearing takes place. Also, the Hearing Officer is often easier to deal with then the Revenue Officer or other collections staff. If you pass the due date on the Notice of Federal Tax Lien to file for a hearing, the hearing no longer has the power to stop all enforced collection actions. You should have 30 days from the date of the letter to file.
If you have a tax lien issue and contact us, we do a free consultation (in-person, on-line, or over the phone.) as the first step. The usual way to handle a tax lien is to handle the underlying tax situation and the lien will be released. The lien automatically releases if the tax bill is paid in full, the IRS Statute of Limitations on Collections expires, or you have an Offer in Compromise approved and paid in full. There can be a 30 day lag before the lien is released. If it takes longer than that, we at Torchlight Tax can call the IRS Lien Desk and get it sorted out.
It is not always possible to handle the underlying tax situation that rapidly. Requesting a Collections Due Process hearing not only gives you a chance to plead your case to an Appeals Officer, but it also gives you more time to work out your handling with Collections held at bay. However, the Statute of Limitations on Collections stops running when the CDP Hearing is requested. The first step after a free lien consultation followed by completing a Torchlight Tax Analysis
A tax lien prevents you from selling a property without paying off the IRS. You still own and control the property. Full payment of the tax liability, expiration of the IRS Statute of Limitations on Collections, or an Offer in Compromise accepted will release the lien.
If you receive a Notice of Intent to file a lien and your right to a hearing contact us immediately.
If you already have a tax lien, you should also contact us. The lien can open a pathway to an IRS levy. Also, if you really cannot pay off the tax debt, you might be able to settle it favorably. Do not wait for your finances to recover before contacting us. When you are in a financial bind is the best time to settle a tax debt. This is counter-intuitive.
“I just need to get my finances together so I can offer the IRS a settlement and release the lien.” is often a bad idea. By the time your finances recover, or your house goes up in value, the IRS has no reason to give you a good deal.
A tax lien is threatening and does need to be handled, but sometimes it can also be an opportunity to settle an IRS debt on favorable terms. If you have a tax lien situation or notice, contact Torchlight Tax right away. Do not procrastinate. Delay can cost you important rights.
Call us at 1-877-758-7797 or 702-463-1818 or email us at info@TorchlightTax.com. We can transfer your call to a branch office near you or help you directly from our central office. . Free consultations are available.
Many people do not know how a professional tax and accounting firm differs from a bookkeeper or tax preparer. The main difference when working with a professional tax and accounting firm, such as Torchlight Tax, is that our firm utilizes the services of CPAs, EAs, and Attorneys who are distinguished from bookkeepers and other tax preparers by stringent qualification and licensing requirements. Our entire team has a purpose to legally save your tax dollars and to make taxes as painless as possible. This means we take your calls and respond to your concerns. If you receive a threatening IRS call or Notice or are worried about some tax question, we are here for year round taking your calls and responding to your emails.
Whether you are filing personal, small business, or corporate taxes, or negotiating IRS tax debt, if you are not already using a professional Tax, Accounting and IRS Representation firm, you most likely have missed out on major tax benefits. This is because a professional tax and accounting firm utilizes licensed professionals such as Certified Public Accountants (CPAs), EAs and Attorneys, who can not only advise individuals on personal financial matters but who can also advise businesses and corporations of all sizes and types. Tax laws are complicated, and no one knows everything. Torchlight Tax is a team and any one of our tax pros can call on other EAs, CPAs and Tax Attorneys in the team who may have specialist knowledge in a specific area of tax.
When doing current taxes, we often come across missed tax savings from prior years. When this happens, the Internal Revenue Service allows you to amend your taxes and lower your tax liability. Whether you or your prior tax preparer missed a W-2 or 1099, a revised 1099. large charitable donations, or made some other error, amending your tax return can help you recover the money you are rightfully owed. When we find this situation, we will advise you on potential savings and amend the previously filed tax return.</p”>
Sometimes, there may be a situation where a tax return could be amended, but it is too late to receive any benefit. Or maybe you made an error that was missed by the IRS that would have increased your tax liability. In some cases, it is prudent to file an amended return. But if it is not necessary and will not save you any money or decrease your risk, we will tell you not to bother. It is silly to amend a return to no advantage which is too old for the IRS to audit. Some firms might file a bunch of unnecessary tax returns and charge a fee. Sometimes a taxpayer himself might increase his tax liability by filing an unnecessary amendment that increases his tax liability. We will not do this.
Amending a tax return requires more professional acumen then doing it right in the first place. At Torchlight Tax, we do file the tax return correctly the first time. And we will happily amend your tax return, but only if it actually is to your benefit. If you think you might need to amend tax returns, contact Torchlight Tax for a free consultation.