More about the back tax process
Having a tax problem is an overwhelming experience. Unfortunately, the threatening collection letters are only the beginning of the experience. When tax problems get this far, you need our help. From tax liens to bank levies, wage garnishments, and outright closure of your business or seizure of your home, the taxing authorities have a number of powerful collection tools which could destroy your family’s finances. Fortunately, we have a great arsenal of tax resolution tools to help minimize the devastating effects of enforced tax collection. If you do not pay your taxes when they are due, you will receive a statement or bill. This bill begins the tax collection process, which continues on through alternative payment options and ends when your account balance is satisfied.
Enforced collection action may be taken to secure payment. Such collection action includes filing notices of tax lien, serving levy notices, and offsetting a tax refund. By filing a notice of tax lien, the taxing authority establishes its claim to your property as a creditor. The lien is a claim against your property, including any you acquire after a lien is filed. The lien is required by law in order to establish priority as a creditor in competition with other creditors in certain situations, such as bankruptcy proceedings or real estate sales. Once a lien is filed, it may appear on your credit report and harm your credit rating. Therefore, it is important for you to resolve your tax liability as quickly as possible before lien filing becomes necessary. Once a lien is filed, a release generally cannot be issued until the taxes, penalties, interest, and recording fees are paid in full.
A notice of levy is another method used to collect taxes not voluntarily paid. This means your property can be legally taken to satisfy a tax debt. This could include your wages, funds in financial accounts, Social Security or disability benefits, and retirement income. If your tax liability remains unpaid, the taxing authorities may move to seize assets such as cars, boats, and real estate or shut down your business! In addition, any future federal or state tax refunds you are due will be offset to the tax liability balance.