• April 10, 2020
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A tax lien and a tax levy are two notable collection actions by the IRS against individuals with substantial tax debt. While a tax lien is the IRS officially exercising certain rights over your property as a result of unpaid taxes, a tax levy is the actual seizure of your property. Understanding both tax lien and levy, as well as their differences, puts you in a better position to protect your assets. Tax attorneys are best to help you resolve all types of tax issues. Continuing on the subject, we present a brief overview of a tax lien and tax levy, as well as what to expect when facing any collection actions. Read on.

Tax Lien

When you miss tax payments and end up amassing a sizable tax debt, the IRS evaluates what you owe and then sends you a bill known as ‘Notice and Demand for Payment’. Failing to respond to the aforementioned notice leads to the filing of a federal tax lien against your assets. The IRS will not only file a Notice of Federal Tax Lien but also initiate other creditors about its rights over your assets. The tax lien will apply to all the assets you own till the date it is filed, and also upon all the assets that you will acquire in the future.

Related Blog: A Brief Guide to Understanding IRS Tax Appeals

The IRS will inform you before filing a federal lien and give you a brief window of opportunity to appeal under the CAP program. The collection due process provisions, on the other hand, allow you to appeal a tax lien after it is filed against you. Our tax attorneys in Fort Worth, Texas can help you navigate the appeal process to boost your chances of getting a favorable outcome.

Tax Levy

While the tax lien gives the IRS rights to your property, a tax levy is the actual seizure of your assets. A tax levy is only activated if you do not respond and act promptly upon receiving a tax lien notice from the IRS. If you fail to pay off the tax debt or negotiate a payment plan with the IRS, the agency is forced to seize your income, properties, and other assets to service your tax debt.

If the IRS plans to seize your assets, it will first send you a Final Notice of Intent to Levy (Letter 1058 or Notice LT11). The notice allows you to schedule a collection due process hearing and avoid the seizure of your property. Respond to the notice in a timely manner to avoid losing your rights to appeal and your hard-earned assets. Contact a tax lawyer without delay to chart the way forward.

Related Blog: Must Know Information about IRS Levies

Problem Resolution

A tax levy is the final step the IRS takes in respect of outstanding tax debts. When faced with a notice for a tax lien, it is advisable to contact your tax attorney and seek tax lien assistance without delay. Based on your attorney’s advice, you may have to pay off the entire tax liability, apply for a Certificate of Discharge, Certificate of Subordination, or Withdrawal of the Notice of Federal Tax Lien. Respond to IRS notices on time and consult your tax lawyer to file for a hearing to stop the IRS from seizing your assets.

A tax lien or tax levy can be avoided by paying all your tax debt in full and responding to any correspondence from the IRS immediately. If you happen to find yourself in murky waters when dealing with the IRS, it pays to have the best tax attorney in Fort Worth fighting your case.

The Last Word

The IRS always offers you a chance to act against any potential collection actions against you. Make it a point to respond to any initial notices and file your tax returns without fail. When faced with IRS tax problems, reach out to our team of experienced tax attorneys in Fort Worth, Texas for quick problem resolution and safeguarding your assets from the IRS. Contact the Law Offices of Nick Nemeth at (972) 426-2553 or email us at jamie@myIRSteam.com.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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