What is the Difference between an IRS Tax Levy and an IRS Tax Lien?
IRS Tax Levy & IRS Tax Lien in Phoenix
IRS TAX LEVY IN PHOENIX—The intent of a levy is to take money from your bank accounts, accounts receivables, wages and retirement accounts. Exemptions from levy include unemployment benefits, worker’s compensation, most house hold items and tools used in your trade.
Before the IRS can levy on your property, you will be sent a letter stating FINAL NOTICE OF INTENT TO LEVY. You are given 30 days to file an appeal. The IRS cannot take any levy action until your appeal hearing is completed. You can also stop levy action by entering into a bankruptcy, file an offer in compromise, enter into an installment arrangement or qualify for non collectible status. In rare instances the IRS can seize your home but must first get court approval.
IRS TAX LIEN IN PHOENIX—A lien secures the IRS claim against your property. The lien will automatically attach to any property you own and property you later purchase. When a lien is filed the IRS has the same rights as your mortgage company, but they are in a second position after the mortgage has been satisfied. If you sell your house, after the mortgage has been paid, the IRS has claim on any remaining equity up to the amount of tax, interest and penalties owed.
The filing of an IRS lien is public information and is done at the county recorder’s office. An IRS tax lien must be filed in the county you own real estate for it to have any affect on your property. A tax lien does not identify the property it encumbers. You have 30 days to dispute the filing of a tax lien. This is called a collection due process appeal. In most cases, a tax lien will expire ten years after the taxes were assessed. There are certain actions that taxpayers can take that will extend the statute of limitations, such as filing a bankruptcy or offer in compromise. Care should be taken to evaluate the negative impact of extending a statute of limitation against the benefits of the action being considered.
Scott Allen E. A. & Tax Debt Advisors, Inc Helping taxpayer’s with IRS tax lien and IRS tax levy in Phoenix Arizona.
For more info: taxdebtadvisors.com