Hi – Michelle Divan here. I represent taxpayers in Denver, CO – and nationwide – who cannot pay their taxes or have back tax debt. Each month I grab a topic that is germane to taxpayers that have debt or issues with the IRS. Last month I focused on how to remove Tax Liens – selling your house, refinancing, and having them withdrawn, and you can see my historic bloc posts here. This month I am focusing my attention and education on collections and how to handle the situation when you owe the IRS money.
Last week, I talked about the 15 MILLION collections letters that were mailed to taxpayers that could not pay their taxes that were due on May 15. Please reach out to me if you received such a letter. I can outline your options to address your tax bill.
This week, let’s talk about the scary letters: Liens and Levies. A Tax Lien is a process that the IRS does to attach your property in order to protect their interest in the money you owe them. A Tax Lien does not seize your assets, but it will limit your ability to sell, refinance, or get a loan against a property. Tax Liens are nasty, but they are not the end of the world. There are processes and procedures to sell property from under a Tax Lien, or even have the lien removed.
A Tax Levy is a notice of property seizure. This is a notice that the IRS will seize assets in cash accounts, they will garnish future income, etc. This is a situation you do not want to get into. The IRS has taken a “break” from sending out Final Notices of Liens and Intents to Levy. This will be ending soon! The IRS is gearing up to start sending out all the Final Intents Levy that have been on hold since the pandemic.
How do you know if you are about to be levied? Look for the following notice codes: CP504 and LT11. These are notices to NOT be ignored. Keep in mind, a Tax Levy is really your final wake up call. A levy can be prevented, we just need to address it right away.
Are you or someone you know in this situation – or have other outstanding tax issues that you want solved? Contact me today and let’s get working on this. I can be reached at 303-250-0122 or [email protected]