Having a tax lien placed on your property is not only embarrassing but a lien can also ruin real estate deals and compromise lines of credit based on the property. The IRS routinely places levies and liens on taxpayers and the IRS often makes mistakes in doing so. Unfortunately the burden is on the property owner to file a wrongful levy claim to prove that a tax lien or levy is invalid. An experienced Irvine wrongful levy claims attorney can help California taxpayers properly file wrongful levy claims and help repair some of the damage that the IRS has done.
In our last post we discussed the basics of IRS liens, wage levies and bank levies. We also began to discuss a recent Tax Court case involving a construction company and the IRS. The company got behind on its taxes so the IRS imposed a lien and refused to subrogate it to a bank's claims arising out of a line of credit. Without the line of credit the construction company could not stay current on its tax obligation and risked closure, so the company took the IRS to court. The Tax Court sided with the construction company and held that the IRS abused its discretion in failing to subrogate its lien to the bank's claims.
It is not uncommon for an Orange County resident to be subjected to a tax lien or levy for unpaid taxes. A lien is type of security interest in property imposed due to a debt. A tax lien is often in the form of a wage or bank levy. A wage levy is essentially like having your wages garnished. When the IRS imposes a bank levy, it places a freeze on a taxpayer's bank account and reserves the right to use the bank account funds to pay a tax debt. Additionally the IRS may seize property or other assets that are equal in value to a tax debt.
The IRS has announced that it will help California taxpayers who are struggling financially with a series of new initiatives that may help Orange County residents get control of their tax liabilities.
The IRS has announced plans to try to help taxpayers who have tax liabilities that they are struggling to pay off. The goal is to try to help people and businesses to meet their tax obligations, paying back taxes due and avoiding liens.