The Internal Revenue Service (IRS) requires all US citizens and residents to file an annual income tax return if they meet specific qualifications, such as earning above a specific threshold.
However, as with any other tax process, problems do arise. Enter the Taxpayer Assistance Order, issued by the National Taxpayer Advocate when a taxpayer is going through or about to go through tax problems due to the IRS actions.
Today’s blog will walk you through these orders, helping you understand what they are designed for and the situations in which they are issued.
Understanding Situations When the Taxpayer Assistance Order Is Issued
It is important to understand that you cannot apply for a taxpayer assistance order due to financial or personal inconveniences preventing you from meeting your tax obligations. The National Taxpayer Advocate Office only issues taxpayer assistance orders when:
- There is immediate danger of adverse action from the IRS
- Thirty days have lapsed without a resolution to your tax issue
- You may have to pay high penalties if you don’t get relief
- You are at risk of suffering injury if relief is not granted
Once issued, the order does the following:
- Releases your property from a tax lien
- Stops the IRS from seizing your assets
- Reissue a lost refund check
Tax Lien
If you fail to make your tax payments, the IRS can file for a lien on your property. A tax lien is a legal claim over a property that secures a payment, loan, or debt. The IRS issues tax liens for personal and company property. If you fail to resolve the lien, the government will have the right to seize and dispose of your property to recover the amount you owe.
State Tax Lien versus Federal Tax Lien
The collection process for the amount due in both state and federal tax liens differs slightly. Let’s now look at how each works and how to eliminate them if they are imposed on your property.
Federal Tax Lien
The federal government first sends you a notice and demand for payment. If you fail to pay your balance within 30 days, the IRS files a Notice of Federal Tax Lien. This alerts other creditors that the IRS has a claim over your properties. Please note that the IRS has 10 years to collect the tax liability.
The collection process under the federal tax lien confers several rights to you as a taxpayer. Despite the IRS’s rights over your property, you still retain the right to be informed of the levy issued against your property. Levy is the legal seizure and sale of your property.
Other rights include the right to know the accurate tax due, the right to appeal the assessment, and the right to representation.
State Tax Lien
In Washington DC, a tax lien will be filed on your property if you refuse or neglect to pay your liability within 10 days after notice and payment demand. The Office of Tax and Revenue may issue a levy against your property. This grants them the right to seize and sell your property.
Note that you have 3 years in Washington DC to pay off your taxes before the government can move and levy your property.
So, how do you remove Tax Liens? You should first pay any tax liability. However, the IRS allows you to negotiate a payment plan if you cannot fulfil a one-off settlement.
Why Do You Need a Tax Attorney?
A tax attorney is the perfect companion to guide you through the complex tax appeals process. You must prove to the NTA that you stand to suffer great prejudice if a tax assistance order is not granted. A lawyer will assist you perfectly in setting out the evidence to show this. They can also aid in appealing any wrong tax assessment you’ve been given.
Conclusion
This blog has opened your eyes to your rights to use taxpayers’ assistance orders against adverse actions by the IRS. “Your tax obligations may be difficult to understand, and liens placed on your property may be a stressful experience. You stand to benefit from navigating this tax process with an attorney,” says attorney John Pontius of Pontius Tax Law, PLLC .They will explain to you the intricate details of the appeals process and the protection of your property.
Media Information:
Pontius Tax Law
Suite 400E
Washington, DC 20005
(202) 932 7753
