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Tag Archive for Balance Due Reminder

Liens and Levies: Keeping Your Clients Options Open – Part 3

When is a Levy Issued?

Technically, there is no legal difference between a levy and a seizure. The IRS uses these terms to specify who was the custody of the property that was taken, either a third party or the taxpayer himself. For the purpose of this discussion we will term property taken from a third party as a levy and property taken directly from the taxpayer as a seizure.

As with the NFTL, the IRS can not levy until the three requirements (notice, demand, and notice of intent to levy) have been issued. These notifications can occur after the NFTL process or in conjunction with it, depending on the specific circumstances.

The Letter 1058, Final Notice of Intent to Levy and Notice of Your Right to a Hearing, must Read more

Liens and Levies: Keeping Your Clients Options Open – Part 2

The Enforcement Process

Enforced collections is a process that starts after requests for voluntary compliance to the taxpayer fail. The process is pretty simple and straightforward:

• A tax return is filed (or not)
• The tax liability is paid (or not)
• The IRS officially assesses the tax (ASED/CSED tolled)
• The tax liability is paid (or not) upon demand
• Liens is placed on the account
• Notice of Federal Tax Lien (NFTL) is issued to taxpayer Read more

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