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Tax Liens and Levies

Help with IRS tax liens and levies

When the IRS initiates its process of collecting back taxes, understanding the communications you'll receive and the difference between terms such as "lien" and "levy" is critical. Here’s a comprehensive overview, designed to equip you with the knowledge needed to navigate these challenges. Furthermore, we highlight the significance of professional assistance from Help4YourTaxProblems, the tax resolution division of Anthony Sykes and Co Inc., led by Anthony Sykes, an Enrolled Agent, to effectively address these issues.

IRS Notices for Back Taxes

The IRS follows a procedural sequence to inform taxpayers about back taxes owed, typically involving several notices:

  • CP14 Notice: The initial notice sent after the IRS assesses taxes you owe but haven't paid, detailing the amount due including taxes, penalties, and interest.
  • CP501 Notice: A reminder about the unpaid taxes.
  • CP503 Notice: A second reminder for unpaid taxes following the first notice.
  • CP504 Notice: A final notice before the IRS takes action, indicating the intent to levy your state tax refund.
  • LT11 Notice or Letter 1058: A final notice of intent to levy and notice of your right to a hearing, sent if previous notices are disregarded, informing you of the IRS's intent to levy your assets and offering the opportunity for a Collection Due Process hearing.

Lien vs. Levy: Understanding the Difference

Tax Lien:A lien represents the government's legal claim against your property due to unpaid tax debt, securing the government's interest in your assets, including real estate, personal property, and financial assets. A lien, typically placed after an assessment letter is ignored, can complicate efforts to sell or refinance property.

Tax Levy: A levy, more severe than a lien, involves the actual seizure of property to satisfy tax debt. Ignoring final notices can lead to the IRS seizing assets, such as wages (via garnishment), bank accounts, social security benefits, and physical property.

The Role of an Enrolled Agent: Anthony Sykes

Anthony Sykes, leading Help4YourTaxProblems, is an Enrolled Agent (EA), which is a federally-licensed tax practitioner empowered by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS) for tax issues including audits, collections, and appeals. EAs are distinguished by their specialized tax code expertise, having passed a comprehensive IRS test covering individual and business tax returns. Their status as EAs allows them to offer in-depth tax advice, prepare and file tax returns, and represent clients with tax issues, making them invaluable, especially in situations involving back taxes, liens, and levies.

Take Action with Help4YourTaxProblems

The distinction between a tax lien and levy underscores the importance of immediate action. If you've received IRS notices or are facing a lien or levy, professional assistance is crucial. Help4YourTaxProblems, spearheaded by Anthony Sykes, an Enrolled Agent, specializes in navigating the complexities of tax resolution. Our team is adept at negotiating with the IRS, aiming to halt liens or levies and explore relief solutions such as installment agreements or offers in compromise.

Facing tax issues can be overwhelming, but you don't have to do it alone. Contact Help4YourTaxProblems today at 562-864-2341 or request a free consultation. Let Anthony Sykes and our team of tax professionals provide the expertise and support needed to resolve your tax problems efficiently. Reach out now and begin the journey to financial peace of mind.