As a creditor, the Internal Revenue Service (IRS) (and also de Franchise Tax Board) wants to protect its interest in the back taxes that are owed to them. One way of doing that is by filing a tax lien against a taxpayer that does not pay what he/she owes and does not try to arrange an agreement with the Service. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
The IRS will usually file a Notice of Federal Tax Lien (Form 668) informing you that a lien has been filed on all of your property. The notice will also explain your right to a Collections Due Process Hearing (CDP).
A federal tax lien can be extremely harmful to a taxpayer, negatively affecting his/her credit and his/her ability to sell property or secure loans. The lien also attaches toall business property and to all rights to business property, including accounts receivable. Even if you filed for bankruptcy, your federal tax lien might continue to exist.
If you have received a Notice that a federal (or state) tax lien has been filed against you, contact us immediately to learn how we can assist you through the lien process. While it can be very difficult to release the tax lien, Brunoro Law will work with the government to try to achieve the best results for you.