Best Tax Preparation Services in Leesburg, VA

Often time people get confused when it comes to Tax Liens and Tax levies. The Federal Tax Lien - If taxpayers owe money to the IRS, there is already a tax lien against them and all of their assets, including those assets they acquire in the future. - Referred to as the silent lien, it arises automatically by statute if a tax liability is assessed. If, after demand for payment is made by the IRS, the taxpayer fails to pay the balance in full, a lien arises in favor of the U.S. government. The IRS doesn’t have to do anything further for that lien to attach. There are three prerequisites to a valid federal tax lien: 1. The IRS has assessed the tax liability; 2. The IRS has given the taxpayer notice of the amount assessed and has demanded payment; and 3. The taxpayer has failed to pay the amount assessed within 10 days after notice and demand. On the other hand, A TAX LEVY is the actual seizure of a taxpayer’s property by the government to use to resolve a back tax debt. Before the IRS can levy a taxpayer’s assets the taxpayer must be given written notice and the right to a Collection Due Process hearing (usually done through either IRS Letter 11, Letter 1058 or CP-90). - Levies are issued after the IRS has issued notices to the taxpayer seeking payment and they have gone either unanswered or the taxpayer has failed to implement and stick with a payment plan. Your tax issue is handled with the utmost confidentiality and privacy.