Federal Tax Lien Tag

17 May Don’t Let The IRS Secret Lien Ruin Your Retirement!

If you owe federal tax and fail to pay, the IRS has a federal tax lien on all of your assets. The lien can be a secret and exists even if the IRS has failed to file a Notice of Federal Tax Lien in the public records. This secret lien can take your retirement funds to pay a tax debt even after the tax has been discharged in bankruptcy. Bankruptcy can discharge some types of tax liability. However, a properly recorded lien generally survives bankruptcy discharge. This is true for recorded tax liens as well as liens that are recorded voluntarily against property of the debtor in bankruptcy. The code specifically provides protection for assets of the bankruptcy estate that the debtor has claimed exempt unless the assets are encumbered by a properly recorded tax lien. However, to qualify for exemption, the property must have actually been part of the estate in the first place.
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07 Jan Taxpayers In Financial Trouble Need Understanding From IRS

The National Taxpayer Advocate is taking the position that IRS collection officers need to consider all alternatives in working with down on their luck taxpayers. Congress established the Taxpayer Advocate program as part of the Internal Revenue Service Restructuring and Reform Act of 1998, legislation often referred to as the "Taxpayer Bill of Rights III." The National Taxpayer Advocate is required by law (IRC Scetion 7803(c)(2)(B)(ii) more specifically) to report to Congress each year and identify the most serious problems experienced by taxpayers in dealing with the Internal Revenue Service. As part of its recently released 2008 report to Congress the National Taxpayer Advocate criticizes the IRS for a continuing failure to properly use alternatives to enforced collection when dealing with a delinquent taxpayer. Because the IRS has been given such powerful tools by Congress to use for collection of tax, it must exercise caution in taking a "hard line" with enforcement. The use of federal tax liens, levies and the seizure of property can cause undue economic hardship for taxpayers and should be avoided when other alternatives are possible.
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