A Federal Tax Lien can significantly increase one’s financial woes in this sluggish economy. The tax attorneys at Nardone Law Group want to better inform Ohio taxpayers about Federal Tax Liens. In the event you neglect to make payment of a federal tax liability, the Internal Revenue Service (“IRS”) has authority to file a Notice of Federal Tax Lien (“NFTL”) against your assets to secure payment or satisfaction of that tax debt. This article explains the requirements and problems of the IRS in notifying taxpayers and their representatives of a Federal Tax Lien.
Federal Tax Lien Notice Requirements & Problems
The IRS must notify you in writing within five business days of filing a Federal Tax Lien. This notice is required the first time a Federal Tax Lien is filed for each tax period. After the five-day notice period, you have 30 calendar days to request a hearing to appeal the Federal Tax Lien. Importantly, IRS regulations also require the IRS to provide copies of any Federal Tax Lien to your tax representative—which could be an accountant, CPA, financial advisor, financial planner, or tax-preparer/tax service—no later than five days after the notice is sent to the taxpayer. But, a recent report by the Treasury Inspector General for Tax Administration (“TIGTA”) reveals that the IRS does not always follow this requirement. After conducting a sample analysis, TIGTA found that the IRS failed to notify the taxpayer’s of a Notice of Federal Tax Lien in 18 percent of cases reviewed. As a result, TIGTA estimated the IRS’ failure may have damaged the rights of over 43,000 taxpayers related to Federal Tax Liens.
Protecting Taxpayers’ Rights
As tax lawyers who represent individuals and businesses in federal tax controversies, we recognize there are many problems with the IRS’ Notice of Federal Tax Lien process. We certainly agree that the IRS’ failure to notify taxpayers and/or their representatives of a Federal Tax Lien is very troubling and jeopardizes your rights. Thus, the TIGTA report is not a surprise, and serves as a useful reminder that regular correspondence with one’s tax representative is very important. We encourage taxpayers, accountants, CPAs, financial advisors and planners, tax-preparers, and tax-services alike to review the audit report.
Nardone Law Group represents businesses and individuals in federal and state tax issues, including Federal Tax Liens and collection alternative resolutions. If you are struggling with tax liabilities or received a Notice of Federal Tax Lien, you should contact an experienced tax attorney today. Nardone Law Group’s tax lawyers and professionals have vast experience representing clients before the IRS. Our experienced tax lawyers will thoroughly review your case to determine what options and alternatives are available, including the offer in compromise. Contact us today for a consultation to discuss your case.