A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after:
The Taxpayer Bill of Rights gives each and every taxpayer a set of fundamental rights they should know when dealing with IRS to comply with tax laws and rules. Theses 10 Bill of Rights codifies existing rights into 10 fundamental rights, & make these rights clear, more understandable, & available to taxpayers.
This section of the IRS Data Book highlights the IRS’s compliance efforts. Examinations (audits) of most types of tax returns, information reporting and verification, math error notices, and criminal investigations are critical tools for determining if income, expenses and credits are being accurately reported and to identify and resolve taxpayer errors and identify fraud. These tools ensure that IRS has a presence across all income and asset levels of taxpayers. While the IRS accepts most returns as filed, some are selected for examination using various methods, including random sampling and computerized screening. Most IRS examinations are conducted through the mail (correspondence) or face-to-face (field).
The IRS made changes to its criteria for streamlined installment agreement processing permanent on September 26, 2018. The enhanced criteria for both streamlined installment agreements improves customer service, reduces taxpayer burden and increases agency efficiency.
If the IRS seizes your house or other property, the IRS will sell your interest in the property and apply the proceeds (after the costs of the sale) to your tax debt. Prior to selling your property, the IRS will calculate a minimum bid price. The IRS will also provide you with a copy of the calculation and give you an opportunity to challenge the fair market value determination. The IRS will then provide you with the notice of sale and announce the pending sale to the public, usually through local newspapers or flyers posted in public places. After giving public notice, the IRS will generally wait at least 10 days before selling your property. Money from the sale pays for the cost of seizing and selling the property and, finally, your tax debt. If there’s money left over from the sale after paying off your tax debt, the IRS will tell you how to get a refund.
Last year IRS received 54,225 offers and accepted 17,890,
IRS filed 543,604 Federal Tax Liens,
IRS levied 782,735 times to 3rd parties,
IRS established 2,821,134 payment agreements,
IRS made 228 seizures nationwide.
Source IRS Enforcement Stats
New IRS form available for self-employed individuals to claim COVID-19 sick and family leave tax credits under FFCRA