Federal IRS Tax Lien An IRS Tax Lien is a legal claim on your property for the amount owed. An IRS tax lien is also the legal right to collect on the amount owed. An IRS Tax lien starts when a tax is assessed and you don’t pay it. For example, if you file a
Fortress provides more back tax related services than can be described within this website. If you owe back taxes and do not see the service you need listed within this site, please call us. The chances are that we can help. The following is a description of additional services that we commonly provide.
LIEN WITHDRAWAL / LIEN AVOIDANCE
In some cases, it is possible to have a tax lien withdrawn prior to full payment of the underlying tax liability. If the government has yet to file a lien, it may be possible to negotiate an arrangement whereby the government agrees not to file a lien.
SALE OF ASSET SUBJECT TO TAX LIEN / CERTIFICATE OF DISCHARGE
Tax liens can impair or prevent a taxpayer’s ability to sell an asset that is subject to a tax lien. By convincing the IRS to approve an Application for Certificate of Discharge of Federal Tax Lien, our staff can help individuals and business transfer clean title of an asset or assets to a buyer.
SUBORDINATION OF TAX LIEN
A tax lien can prevent a taxpayer from utilizing assets subject to the tax lien for collateral on a loan. A tax lien can also interfere with an existing lending arrangement between a taxpayer and a lender, particularly when the collateral is inventory or accounts receivable. In either of these situations, it may be possible to convince the IRS to approve an Application for Subordination of Federal Tax Lien.
TAX ACCOUNT REVIEW / REVIEW OF TAX TRANSCRIPT
Taxpayers frequently have a difficult time understanding how the IRS calculated their liabilities. We can obtain a copy of your tax transcript, analyze it, and tell you exactly how much you owe in tax, penalties, and interest. We can also obtain additional useful pieces of information from your tax transcript, such as whether the IRS has fulfilled its procedural requirements for enforcing against you.
ADJUSTMENT OF TAX LIABILITY / CORRECTION OF IRS ERROR
The IRS and state taxing authorities do sometimes make mistakes. If you believe that your tax liability is higher than it should be, we can obtain and analyze your tax transcripts. If the IRS failed to give you credits to which you were entitled or if they misapplied credits, we will submit the appropriate proof and make sure that your liability gets reduced accordingly.
Although Fortress does not engage in lending, we work with lenders who specialize in providing financing to financially distressed businesses—including businesses against whom a tax lien has been filed. If the taxing authorities have filed a tax lien against your business, you probably already know that securing financing is next to impossible. We can refer you to a lender who will give you a much higher chance of being approved, tax liens and cash flow problems notwithstanding. Funding can occur within days of application.
Factoring / Actoring / Accounts Receivable or Inventory Secured Financing
Your Business is Currently Factoring
If your business is already factoring, a tax liability should be treated as an emergency. Factoring agreements commonly provide that the accrual of a tax debt, and especially the filing of a tax lien, will cause the factoring agreement to default. Factoring companies check public records for tax liens against their borrowers, so it is only a matter of time before they learn about your tax debt. Once they catch wind, they can cease funding immediately.
For businesses who rely on factoring, the sudden loss of funding is often far more dangerous than the existence of the tax debt, and it can very often mean the demise of the business. While this is an extremely serious and challenging situation, our tax attorneys can work with your factoring company and the taxing authorities in order to maximize the chances that you will continue to receive funding.
Call us immediately if your business has the lethal combination of a factoring agreement and a tax liability.
Your Business Needs Factoring or a New Factoring Lender
If your business needs factoring or your existing factor refuses to continue funding, we can refer you to a factoring company that is more lenient with regard to funding tax indebted businesses. We can also coordinate between the factoring company and the taxing authorities to ensure both that the tax debt doesn’t interfere with the factoring agreement and that the tax debt gets resolved with favorable terms.
Attorneys vs Accountants
Which is Best for You?
The good news is that the IRS cannot just file a Notice of Federal Tax Lien (NFTL) without any warning or notice. Several things must first occur before an NFTL gets filed. An assessment must be made, notice and demand for payment must be made, and the taxpayer must neglect or refuse to pay the
Question: Will the IRS garnish my wages or Levy my wages? How can I avoid this? Answer: In order to answer this question effectively, some background and definitions with regards to IRS procedures are warranted. A levy on wages is where the IRS effectively takes a portion of ones wages and applies it to the