A tax lien or levy can be a very scary and eye-opening event. Why? Because when most people receive a notice regarding an individual or corporate tax lien or levy notice, their first reaction is bury their head deep in the sand. The problem is what most people do not recognize is that there is a ticking clock when it comes to respond to these notices, AND the clock generally starts when the Tax letter is SENT, not received.
There are various different taxing authorities, including the Internal Revenue Service (IRS), Franchise Tax Board (California FTB), Board of Equalization (Sales Tax), and Employment Development Department (Employment Tax/Unemployment Insurance) When a person receives a lien notice, it generally means that the taxing authority is going to place a “lien” on the property, so that when the taxpayer tries to sell the property at a later time, the taxing authority will seek to obtain its monies. Usually, a tax lien will not result in a forced sale of the property.
A levy on the other hand is a whole different type of bad. A levy is when the taxing authority contacts the bank and freezes your money. Then, you as the taxpayer have 21 days (IRS) to respond to the levy and attempt to get the levy released. Of course, once the taxing authority has a levy (read: Stronghold) over your money, it is much more difficult to get the levy released, as opposed to fighting the NOTICE of LEVY from the start.
By retaining a tax attorney experienced with these types of individual and business matters, he or she may be able to effectively avoid the levy and/or lien and negotiate with the taxing authority to avoid these harsh remedies.
It is VERY IMPORTANT to keep in mind that once a taxpayer receives a tax notice, time is of the essence, since once the amount of time to respond expires, there are a very limited number of options that are left, and they are generally not as effective –as the taxing authority becomes less sympathetic the longer the debt lingers.
Contact a Tax Attorney Today!
SEAN M. GOLDING, ESQ, EA
Sean M. Golding is one of only a few attorneys licensed in both New York & California and has accumulated 15 years of legal experience. He is also an Enrolled Agent, the highest credential awarded by the IRS. He represents clients worldwide in matters involving Civil & Criminal Tax, Probate, Estate Planning, and International Law. Sean’s clients include U.S. and foreign citizens living throughout the states, as well as abroad. Past and current clients reside in Iraq, Japan, Afghanistan, Indonesia, South Africa, Morocco, India, Pakistan, Taiwan, Nicaragua, Switzerland, Canada, Mexico, Philippines, Hong Kong, and Korea. Sean is currently enrolled in one of the nation’s Top Master of Tax Law Programs at the University of Denver in a distance program designed for experienced professionals. He worked his way through school, graduating University of Denver and Whittier Law School and earning Dean’s List distinction at both institutions. He is a partner in the law firm of Golding & Golding. (http://www.GoldingLawyers.com)