Website design By BotEap.comFast answer: Yes.

Website design By BotEap.comBut first let’s learn a little more about the IRS lien:

Website design By BotEap.comAn IRS lien is an authorized seizure of property to satisfy a tax debt.

Website design By BotEap.comWhen are IRS liens sent?

Website design By BotEap.comThe IRS in most cases taxes after these three requirements are met.

Website design By BotEap.com1. The IRS assessed a tax balance and provided a “Notice and Demand for Payment.”

Website design By BotEap.com2. The taxpayer ignored or refused to pay the balance due.

Website design By BotEap.com3. Finally, no less than 30 days before a lien is served, the IRS sends a Final Notice of Intent to Lien.

Website design By BotEap.comNotices from the Internal Revenue Service will be sent to the last known address they have on file.

Website design By BotEap.comExactly what types of liens are there?

Website design By BotEap.comThere are 4 general types of tax sources for the IRS.

Website design By BotEap.com1. Bank – When the IRS withdraws cash from your bank account. Usually you won’t know until it has already happened. At the time the lien is issued, the bank must freeze the money up to the amount due. The bank is expected to send the money to the IRS, if the levy is not released within 21 days.

Website design By BotEap.comIf you have a joint bank account or any other third party account, as long as the taxpayer’s social security number is on it, then yes, the IRS can garnish the account. Regardless of who deposited the funds into the bank account, this is still true.

Website design By BotEap.comBank liens are often difficult to discharge because the IRS calculates ordinary and necessary living expenses and the IRS essentially takes the position that if you have money in the bank, you don’t need it for necessary living expenses or you would have already spent it. “Excessive difficulty” is the other. Generally, you will need to provide utility disconnection notices or a foreclosure notice.

Website design By BotEap.com2. Wage Garnishment – ​​This type of lien is served at your place of employment and requires the employer to withhold a specific portion of your paycheck. Approximately 85% of your salary can be legally leveraged. Social Security payments can also be collected by the IRS.

Website design By BotEap.com3. Third Party Accounts – This could consist of retirement accounts, stock accounts, 1099 sources, and basically any source of income or assets with a few exceptions.

Website design By BotEap.com4. Assets – Generally challenging for the IRS to issue, making it the least typical lien issued. This is any type of asset, such as houses, vehicles, boats, etc.

Website design By BotEap.comHow to stop IRS garnishment action? File your returns, pay the debt in full, or negotiate.

Website design By BotEap.comIt is important to note that before an IRS lien can be removed; all unfiled tax returns must be filed. The IRS will not even consider discharging a lien until all accounts are current. The IRS will then cancel the lien if you pay the balance in full. Bankruptcy can also release a lien.

Website design By BotEap.comCan’t pay the balance? Then submit an offer in compromise, installment agreement, or have the case placed in hardship status. In the end, I always recommend professional representation. An experienced professional will know how to work the tax laws in his favor.

Website design By BotEap.comThe IRS lien should always be taken seriously, but with a little education, it is possible to work your way through or around a very demanding situation.