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 We will learn about the very strict time tables involved, how to get a lien or levy removed, withdrawn, or subordinated and how to help our clients get things back in their control.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.