A Filed Notice of Federal Tax Lien is a public notice filed by the IRS. This lien attaches to all of your assets and can damage your credit rating. In some instances the IRS may withdraw, discharge or subordinate the federal tax lien. Moreover, the lien establishes the IRS as secured creditor thereby allowing them to seize your assets, if necessary.

The IRS routinely issues levies against wages. Most levies are issued because of lack of communication or the taxpayer has defaulted on an installment agreement. Most wage levies are continuing, meaning it will attach to every pay check until it is released or you leave the employer. Usually, the taxpayer takes home a couple of hundred dollars and the IRS keeps everything else. Most people are not left with enough to pay their bills. Most wage levies cause a financial hardship. We advise you to seek professional help if one has been filed on your wages.

The IRS also routinely issues levies on bank accounts. Most bank levies are issued because of lack of communication or the taxpayer defaulted on an installment agreement. The good news with a bank levy is that the funds are not gone yet. The bank must hold the funds for 21 days before releasing it to the IRS. A bank levy may cause a financial hardship. We advise you to seek professional help with getting it released.

This levy attaches to specific property or rights to property existing at the time it was received. For instance, if a levy is issued on accounts receivable it only attaches to invoices received prior to notice of the levy. Invoices received by your customer after the notice of the levy are not affected. A levy on accounts receivable can cause financial difficulties. We advise you to seek professional help to get it released.

The IRS can seize and sale your personal or real property in order to pay your tax liability. This includes your home, automobiles, real estate, inventory, business equipment or any tangible property. Proceeds from the sale are first applied to the expenses of the levy and sale and then to the tax liability. If the sale proceeds are less than your tax liability and the expenses of the levy and the sale, you will still be liable for the remaining unpaid tax. We advise you to seek professional help if the IRS has filed a Notice of Seizure on your property.