When the taxpayers do not pay taxes owed, the IRS will collect the delinquent taxes by any means necessary.
The date that tax is recorded is the date of the assessment, and the Government has 60 days in which to notify the taxpayer of the assessment and demand payment, and it has 10 years to collect the tax. The taxpayer is usually given 10 days from the Notice of Deficiency and demand to pay the delinquent tax.
If the taxpayer doesn’t pay the taxes due, a “general tax lien” arises automatically at the time of the IRS assessment against all taxpayer’s “property and rights to property, whether real or personal.” The taxpayer will receive the IRS Notice of Filing of the Lien within 5 business days of the filing, and the IRS Notice of Intent to Levy no less than 30 days before levy.
The federal tax lien is not self-executing, so the IRS must enforce it either through a civil action or an administrative levy and sale with certain property exemptions. Court may order property subject to a federal tax lien to be sold to satisfy the tax debt.
NOTE: No seizure of a dwelling that is the principal residence of the taxpayer, the taxpayer’s spouse or minor child is allowed without prior judicial approval.
Timely request for a hearing postpones any collection activities, criminal tax prosecutions, and refund suits until the Appeals Officer issues a determination. At the hearing, the taxpayer may raise “any relevant issue relating to the unpaid tax or the proposed levy,” including such defenses as an Innocent Spouse Relief, or an Offer in Compromise (OIC), or an Installment Agreement.
If the decision of the Appeals officer is adverse to the taxpayer, the taxpayer may seek judicial review by filing a Tax Court petition within 30 days of the Appeals Officer’s decision.
At Guzhva Law Firm, we are providing thoughtful solutions and measurable value to each individual situation. Because U.S. tax law and regulations are complicated and constantly changing, it is important that you obtain up to date information about the provisions that apply to you to prevent costly mistakes.
Our tax attorney can help you to negotiate a fair offer in compromise and/or installment agreement that will not ruin your family’s finances, or prove the application of the innocent spouse defense to your situation. We can help stop imposed liens and levies for tax delinquencies. We can represent you in the Tax Court.
To schedule a free phone consultation with an IRS collections attorney, please contact us today. With offices in Bellevue, we work with tax clients throughout Seattle and Washington State, and elsewhere.