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What’s the Difference Between an IRS Levy And an IRS Lien?

The IRS imposes a variety of penalties on delinquent taxpayers who fail to respond to collection efforts. In especially severe situations, the agency may assess liens or levies. Both are problematic for taxpayers, but many struggle to tell the difference. Keep reading to learn the distinctions between these two IRS actions — and why both […]

Everything You Need to Know About a 941 Tax Lien

As an employer, you are accustomed to dealing with tax concerns. Many of these involve IRS Form 941, which is also known as the Employer’s Quarterly Federal Tax Return. Filed four times each year, this form calls for details on the number of people employed by your business, total wages paid to these workers, and […]

How Do You Get an IRS Lien Removed? A Look at Possible Strategies

Your tax debt situation has spiraled out of control, to the point that the IRS has placed a lien on your account. This public document notifies creditors of the government’s legal rights to your property —and it makes it virtually impossible to secure outside loans or lines of credit. The sooner you ditch your IRS […]

What to Say (and What Not to Say) When Communicating with an IRS Agent

The suggestions highlighted below will help you communicate more effectively with the IRS on behalf of your client.  Be Prepared With the Proper Documents Prior to calling, gather relevant tax documents from your client to ensure that you’re fully prepared to answer any questions IRS agents may pose. The more organized and in charge you […]

Crash Course: The Difference Between an IRS Lien and IRS Levy Explained

The IRS threatens a variety of consequences for nonpayment of taxes. While penalties and interest may be the first course of action, liens and levies are distinct possibilities for large balances not paid over a long period of time. While these repercussions hold many similarities, they’re quite different in practice, as highlighted below. Levies Versus […]

How IRS Debt Affects Credit— And What You Can Do

If the IRS audits you and finds you underpaid your taxes, the taxes themselves (along with any penalties and fees) don’t immediately impact your credit score, but how you pay that debt can cause those numbers to drop. How much you owe and how you choose to pay both impact your ability to borrow money […]

Floyd Mayweather’s Tax Problems, What Can We Learn from Them? (Part 1)

The tax woes of Floyd “Money” Mayweather made their way into the spotlight earlier this summer, as ESPN reported that the undefeated professional boxer has a lien from the IRS in the amount of $7.2 million for taxes owed from 2010—in addition to $22.2 million he allegedly still owed in taxes for 2015, for the […]

3 Ways an IRS Tax Lien Can Cause Problems – Both At Work And At Home

A federal tax lien is the government’s claim against your property if you fail to pay or otherwise ignore a debt. A tax lien only occurs after the IRS assesses your liability and sends you a bill for how you much you owe–but you neglect to pay the bill in time. The best way to […]

How Does Your IRS Tax Debt Affect Your Credit Score?

Your credit score plays an important role in your life. It determines the interest rate you’ll have to pay on car loans, home mortgages, etc. In addition, insurers may factor in your credit score when they’re trying to decide your auto insurance rates. Potential employers might also check out your credit worthiness when making their […]

What Happens When an IRS Tax Lien is Placed on Your Property – and What Can You Do?

Being hit with an IRS Tax Lien is an anxiety- and stress-ridden event, but understanding the action can help you navigate the process. The process begins when the IRS files a Notice of Federal Tax Lien, and this notice goes on your credit. The result is that the lien essentially diverts any income coming to […]