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Liens and Levies: Keeping Your Clients Options Open – Part 1

Today we will be looking at the IRS Lien and Levy programs as a part of the Collection Division. We will learn about the very strict time tables involved, how to get a lien or levy removed, withdrawn, or subordinated and how to help our clients get things back in their control.

1. The enforcement process.
2. When does the IRS institute a lien?
3. When is a levy issued?
4. Collection Appeal Program (CAP)
5. Collection Due Process (CDP)
6. What can the taxpayer do to release a lien/levy?
7. Other payment options does the taxpayer have?

We will start out with some definitions that will help you throughout this blog series:

Lien: A lien is a claim on the value of a piece of property for the satisfaction of a debt. A lien does not actually take the taxpayer’s property.

Levy: A levy is the legal taking of property held by third parties (i.e. bank accounts, brokerage, wage garnishments, etc) in satisfaction of a debt. This normally occurs after a lien, but not in jeopardy situations.

Seizure: The legal taking of a taxpayers property that is in his control in satisfaction of a debt.

ASED: Assessment Statute Expiration Date, the last date a tax assessment can be made against a taxpayer.

CSED: Collections Statute Expiration Date, the last date collections action can be taken on a debt owed by the taxpayer.

Collections Due Process (CDP): A hearing the taxpayer may request during collections procedures.

Collection Appeals Program (CAP): A separate appeal process available to the taxpayer during enforced collections.

Next:  The Enforcement Process and Liens


Anything and everything taxes. I also write the Louisiana State book to go to our new Income Tax Course learners and the state-wide training for upper level Tax Professionals. I am an Instructor of all levels of tax related classes. I love to teach and write as well as taking the absolute best care of my clients all year round.

26 years in Law Enforcement (13 in the Air Force and 13 at the Bossier City PD), 20 years doing income taxes professionally.
My goals now are to spend many years being my 3 grandchildren’s MeeMaw, taking the absolute best care of my clients, and continually learning new things.
Taxes! I specialize in military, states, small business, and rentals.
The postings made on this site are my own and do not necessarily represent HR Block’s positions, strategies or opinions.

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