IRS Lien or Levy Notice

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. 

Assets — A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.

Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.

Business — The lien attaches to all business property and to all rights to business property, including accounts receivable.

Bankruptcy — If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.

A tax levy is one of the most severe collection actions used by the IRS and state department of revenues. It is the legal seizure of taxpayers assets to satisfy back taxes owed. This is different from a tax lien because a lien is only a claim to your assets while a levy is the actual seizure of the assets. 

 The IRS will usually levy only after these three requirements are met:

• The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill)
• You neglected or refused to pay the tax; and
• The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.

What do you do when you find out you owe the IRS money?  Take a deep breath... the good news is you have options!

Step 1:  Contact Life Plan to help you file any past due tax returns

Step 2:  We'll help you determine the best payment plan option for your specific situation.  A few variables in determining which option may be best include how much you owe, your ability to pay and the time required under different plans.