There is no way to avoid a legitimate tax debt owed to the Internal Revenue Service. When the IRS does not receive timely payments without having a valid reason, they’ll simply take the funds away from you. Accounts and other sorts of assets are merely taken, landing you in further financial distress. It’s an excellent way to get a delinquent taxpayers attention – and that’s the objective, needless to say. A federal tax lien may affect any fixed and private assets; even your pension, retirement funds and social security benefits. Hence, if you face an IRS tax levy or possibly a federal tax lien immediate measures ought to be taken. In keeping with IRC 6321, a federal tax lien is automatic in situations where the IRS has strong good reasons to think that this money owed may be repaid but isn’t being repaid. This is a type of clandestine tax lien which can be permitted by statute. Hence it’s alternatively known as the ‘statutory lien’; but public records aren’t maintained for this kind of insidious collection tactic.
Various complications arise in the event the IRS begins seizing a person’s account, garnishing his wages, seizing his property or taking money from the accounts receivable from his business. Checks start bouncing, house payment or rents enter default, vehicles are repossessed, etc. This is now obviously a serious situation. Businesspeople suddenly realize that previously trusted and reliable suppliers and vendors are staying away. All business dealings are stalled. It is an especially alarming situation, needless to say, and only a qualified tax consultant or attorney may help resolve this mess in the event things have gotten this far. And, again, it’s faster and easier to avoid this type of aggressive collection than it is to halt it once it’s started. A few rights still remain, thankfully, so there’s still some hope. A taxpayer may perhaps prevent the federal tax lien or challenge it and win; nonetheless it takes a practiced tax professional to unravel this complex situation.
It is very important remember that the IRS will use intimidation tactics as a way to collect money from you. They’re going to use their legal clout to make certain you pay the entire amount in the timeframe they expect. However it is not necessary to throw up your hands and give up, thinking that no choices are left to you. If there is a legitimate justification behind your inability to erase the tax debt, it is important to contest and combat the action taken against you. You have a good possibility to enter into a negotiation with the IRS which might enable you to pay a lot less by virtue of a favorable repayment plan and thereby avoid a federal tax lien. But, in any event, you mustn’t resist using the assistance and advice of a qualified tax professional when faced with a federal tax lien.
Carly Garber is a senior tax consultant with Confidential Tax Resolution.
For more great information on Tax Preparation Service visit “http://confidentialtaxresolution.com” Confidential Tax Resolution or call CTR at 1-866-254-3131.