A Notice of Federal Tax Lien is the IRS’ way of securing their legal interest in your property. The Lien is filed against the business’ Employer Identification Number (EIN). The Lien is the IRS’s way of notifying the general public of their legal right to your property. Tax Liens are public record and will be reported to the various credit bureaus. By securing their interest in your property, if you go to sell any business property or other assets the IRS has a legal right to the proceeds of the sale up to the amount of the Federal Tax Lien.
A Federal Tax Lien is not a seizure of your property. A Federal Tax Lien and a Notice of Levy are very different things and should not be confused. Where a levy is a seizure of your property, a lien is nothing more than public notice of the IRS’ legal interest in your property. A business can and oftentimes does continue to operate with the presence of a Federal Tax Lien.
The IRS will file a Notice of Federal Tax Lien as a matter of policy when your tax debt reaches certain limits. A Federal Tax Lien can be avoided if a permanent resolution is secured prior to the lien filing however once a lien is filed it will seriously impact your credit, ability to obtain financing and will make your IRS debt public record.
There are many different programs that the IRS offers to remove a Federal Tax Lien or to prevent one from ever being filed in the first place. It would be best to prevent the lien from being filed in the first place however if it has already been filed Tabb & Associates will walk you through all of the options that are available to you given the specific circumstances of your case. Ever taxpayer’s situation is different and resolution options will vary however we will exhaust every option to ensure that you receive the best solution to meet your needs.