Most taxpayers get entangled into some nasty things just because they did not act at the right moment. IRS notice is not something that you keep aside for later. It is something that you need to start working upon as soon as possible. Click here to get more help as a taxpayer.
Lien is different from levy
Keep in mind that a lien differs from a levy. The difference between a lien and a levy is that a levy is a notification that you have not paid the debt off and affects all assets and credit records, but a lien is a notice that the IRS will confiscate property. They can also remove money from bank accounts or garnish paychecks to pay for the obligation. The IRS warns that if there is a tax lien on your property the taxpayer must satisfy the lien before selling or refinancing the property. But having this notice does not necessarily mean that you are done for all. There are logical ways to pay the debt of get a release without a harm to your property.
IRS Services
The IRS stated in 2011 that it was taking steps to assist struggling taxpayers by simplifying the lien process, including:
- Allowing small businesses to pay in installments.
- Adding more taxpayers to a simplified Offer in Compromise scheme.
The IRS will make modifications if you establish a Direct Debit Installment Agreement (DDIA) and will make it easier for taxpayers to get lien released. Liens will now be released upon receipt of full tax payment at the taxpayer’s request. Withdrawals are used to ensure that the IRS does not vie with other creditors for the property. The public Notice of Federal Tax Lien is removed to accomplish this. The option to get a Certificate of Discharge, which releases the lien from particular property, is available if you meet the requirements set forth in certain Internal Revenue Code provisions. For more information, check out cpa tax services palm beach gardens fl.