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Author: ardale1960 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Tax Liens and Levies Date: 9/22/2000 11:46 AM
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I just received notice that the IRS has sent me a notice of intent to levy and filed a tax lien on my property because of $8800 in back taxes I owe. I have been making monthly payments, but not in several months. What are my rights as a taxpayer in this situation? I messed up...
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40235 of 121144
Subject: Re: Tax Liens and Levies Date: 9/22/2000 1:21 PM
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I just received notice that the IRS has sent me a notice of intent to levy and filed a tax lien on my property because of $8800 in back taxes I owe. I have been making monthly payments, but not in several months. What are my rights as a taxpayer in this situation?

Your rights are varied and outined in the notice and IRS Publication 594, but to give advice we first need to know your intentions. I assume that you were on an installment agreement and have now received a notice of default on that agreement.

Why did you stop making payments? Can you make payments? If so, in the same amount as the original agreement? Had you defaulted before?

Some additional information will help. At the moment, the only advice I can give is don't ignore the notice.

TMF ExRO
Phil Marti

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Author: ardale1960 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40247 of 121144
Subject: Re: Tax Liens and Levies Date: 9/22/2000 6:00 PM
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<I just received notice that the IRS has sent me a notice of intent to levy and filed a tax lien on my property because of $8800 in back taxes I owe. I have been making monthly payments, but not in several months. What are my rights as a taxpayer in this situation?>

Your rights are varied and outined in the notice and IRS Publication 594, but to give advice we first need to know your intentions. I assume that you were on an installment agreement and have now received a notice of default on that agreement.

<Yes, that's true.>

Why did you stop making payments?

<I stopped because I had an several car repair bills in a row that had overwhelmed me financially, and I didn't contact the IRS to let them know what was going on.>

Can you make payments? If so, in the same amount as the original agreement?

<Yes, but they want about $20 a month more per payment than I was paying before.>

Had you defaulted before?

<No>

Some additional information will help. At the moment, the only advice I can give is don't ignore the notice.

<I haven't. I talked to them yesterday and need to call them back to continue dialogue and set up payment plan. I wanted to know if I'm following protocol. More info. later if requested. Thanks, Phil.>


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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40260 of 121144
Subject: Re: Tax Liens and Levies Date: 9/23/2000 12:40 AM
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Can you make payments? If so, in the same amount as the original agreement?

<Yes, but they want about $20 a month more per payment than I was paying before.>


Thanks for providing the additional info. There are a couple of important questions about the proposed additional $20 payment: can you do it (and keep with it), and have they explained how they came up with that figure.

At this point I would suggest you continue to deal with the people you're dealing with and see if you can reach an agreement you can keep. If you can't reach agreement with the front line, you can appeal as indicated in the default notice. At the appeal stage, or now, for that matter, you might want to consider engaging a representative. If you do decide to get a rep, you want one who is experienced in IRS collection matters. I would recommend a search of the enrolled agent database at www.naea.org.

You might also want to take a look at the Installment Agreement and Financial Analysis Handbooks of the Internal Revenue Manual: http://www.irs.gov/bus_info/tax_pro/irm-part/part05.html. It never hurts to know the guidelines under which the person you dealing with is supposed to operate.

TMF ExRO
Phil Marti

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Author: abboke Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40301 of 121144
Subject: Re: Tax Liens and Levies Date: 9/25/2000 7:20 PM
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obtain an excellent or outstanding tax lawyer. there may be procedural or other defenses factors that will provide a clear basis for a favorable compromise, if not a total defense. my tax lien was $43,000 plus. i paid the irs nothing and compromised the attorney's fee.

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Author: ntortorella Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40308 of 121144
Subject: Re: Tax Liens and Levies Date: 9/25/2000 9:20 PM
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Hve you considered an offer in compromise?

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Author: eadiekelly Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40311 of 121144
Subject: Re: Tax Liens and Levies Date: 9/25/2000 10:14 PM
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I don't know the answer to your question. But I'm interested in the reply. I have a similar problem.

One thing I would suggest, call them (and write certified mail) and tell them you want to respond to their mail. Tell them why you haven't paid and ask them how you can work this out without getting a lien on your property. I have found them to be more "friendly" as of late.

I was a mortgage broker for a time. If they do place a lien, it will go on your credit report and is perceived as a BIG negative.

Good luck

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Author: khoyt Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40335 of 121144
Subject: Re: Tax Liens and Levies Date: 9/26/2000 7:39 PM
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Sorry, but your taxpayer rights suck! I fought them for years, but ultimately, they will get their money or they will file a lein (if you own property) or garnish your paycheck. Talk to them and try to work out a reasonable monthly schedule and stick to it. Don't ignore their notices. Call them. Even though they don't care about your situation, there's no way out. Bankruptcy won't affect their collection efforts either. They don't let up because they know sooner or later your financial situation will probably change and they can get paid. I fought them for ten years. 80% of what I finally paid them was interest and penalties.
But, they are paid, my life went on and yes, I hate them passionatly to this day.
Good luck.

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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 40350 of 121144
Subject: Re: Tax Liens and Levies Date: 9/27/2000 5:57 AM
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Bankruptcy won't affect their collection efforts either.

Not quite true. If it has been 3 years since you filed the return in questions if you filed on time, or if it has been 2 years since you filed if you filed your return late or if it has been over 240 days since they assessed you, you can possibly file a Chapter 7 bankruptcy and have the taxes discharged assuming you do not own any real property. A chapter 7 only discharges the lien in persona (against you personally), not the lien in rem (against property).

Under a Chapter 13, you must enter into a payment agreement with them as part of the reorganization. This can sometimes be beneficial since the judge can have the penalties and interest as well as the balance of taxes discharged at the end of the 60 months of reorganization.

A good bankruptcy attorney with the additional specialty in taxes or a good tax attorney with bankruptcy expertise can be a net savings to you instead of an expense.

Bankruptcy in any case will forestall their collection efforts since it prohibits their collection efforts during the bankruptcy as it does all creditors. However, if the tax lien is not discharged for reasons of not qualifying as per the above limitations, the efforts to collect will resume after the bankruptcy is discharged.

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