While IRS Tax Liens are not as serious as a levies, they are a warning shot across the bow and if action is not taken to satisfy the IRS, a levy or wage garnishment may be in the works. A lien will prevent a property owner from selling their home until the amount in question has been paid, or the lien has been removed by a court order. The way it works is should the property owner sell their property, the IRS will take the money owed from the amount from the sale. Obviously this will keep a property owner from choosing to sell any property with a tax lien.
According to a new report by the Treasury Inspector General, the IRS has waived essentially $1.4 billion in delinquent taxes between 2002 and 2008 by failing to file federal tax liens. In order to protect its claims against delinquent taxpayers, the IRS must file a federal tax lien, which establishes the IRS’ priority among other creditors. However, in certain cases, the IRS can decide not to file a tax lien. When the IRS agent decides not to file a tax lien, they must document the taxpayer’s file to state the basis for their decision not to file the tax lien.
If you suspect that the IRS is about to start “clipping your paycheck” and leaving you without a livable wage, it’s time to take action and stop it while you still can.
Try not to forget about the real-life stories I described in the beginning of this article. These are stories of real business owners who didn’t take action – not only did they lose their businesses…they went to prison and still remained responsible for the payroll taxes.
Last week, lawyers for actor Wesley Snipes were in federal court in Ocala defending him on charges of tax evasion. The lawyers have argued that Snipes did not receive a fair trial due to jurors who had made up their minds about his guilt prior to deliberating on the verdict in his 2008 tax evasion case. Snipes had originally been charged with failing pay his taxes from 1998 through 2000 on earnings of approximately $38 million. Since the trial, Snipes has been free on bond.
How is this possible you may ask? The fact is, unemployment is an insurance program that employers contribute to, it is not a welfare program based on need.
So, regardless of your income level, if you have lost your job and your employer paid insurance benefits, you are entitled to make a claim.
Is it really possible to pay the IRS “pennies on the dollar” and have the rest of your tax bill forgiven? Yes – it is possible…but it’s not very likely. It’s called an Offer-In-Compromise – and it used to be the only legitimate way to negotiate an actual lowering of the amount of taxes owed to the IRS by a taxpayer…sometimes far less.
Do you owe back taxes? If so, realize that you’re not alone. Even the world’s richest and most popular people owe back taxes, too. And the IRS will get their money, regardless of who you are. Just ask Jennifer Lopez. Here’s what El Pais, the most widely read newspaper in Spain, had to say in [...]
Along that same line of thinking, if you had a problem with the IRS, would you go it alone? Don’t believe for a second that reading a couple books, a website or a couple emails about “how to deal with the IRS” will prepare you to deal with the IRS if you owe them money.
Have you developed a false sense of security? Maybe the IRS placed a lien against your property as a “warning shot across the bow”, but you haven’t responded. Sure, the tax lien can ruin your credit and make it virtually impossible to sell your house, but it doesn’t necessarily put a damper on your day-to-day [...]