Frequently Asked Questions
What is a lien?
When your taxes are unpaid, the IRS establishes a lien against all your assets (especially real estate). This gives the IRS the legal right to collect taxes from the sale of your assets, which includes just about everything you own.The lien can be against you, your spouse, or your company. A lien against your company could mean the seizure of your accounts receivables.When the IRS files a lien, it also shows up on your credit report and often prevents you from opening a checking account or borrowing against any assets, like your home.
What is a levy?
A levy is the IRS’s way of getting your immediate attention. What they are saying is, we have tried to communicate with you but you have ignored us. Levies can also be used to seize your wages and whatever other assets you have. If you own it, they can take it. That includes checking accounts, auto’s, stocks, bonds, boats, paychecks, and even Social Security checks! A wage levy, or garnishment, is when the IRS goes after your paychecks, leaving you with little to no income until the debt is paid off.
What is a seizure?
Unlike the levy which involves intangible assets such as your bank account, a seizure is the taking of physical assets, such as your home or car. Seizures usually happen in aggravated cases when someone ignores many requests over a long period of time to pay their outstanding taxes.A Seizure should not be taken lightly. The IRS will ultimately pursue seizure of your physical assets.
What is the Statute of Limitations?
A statute of limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS tax-related issues.. The collection statute expiration date (CSED) is the last day that the IRS can collect on an outstanding balance that you owe. The CSED is 10 years from the date the IRS assessed the taxes. That means the IRS has 10 years to collect the unpaid tax balances from the date they were assessed.
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