Q:

Is a tax attorney needed if the IRS levies a tax lien against you?

A:

Quick Answer

People do not need to hire a tax attorney upon receipt of a federal IRS lien; some choose to deal with the lien themselves, while others hire attorneys to act as their representatives and attempt resolution of liens on their behalf. The Internal Revenue Service — IRS — issues a tax lien against individuals when they have delinquent payments on a tax account. Several options exist for dealing with a tax lien; taxpayers may seek resolution themselves or hire representatives to take action to correct liens, as noted on the IRS website.

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Full Answer

Sometimes, the IRS issues a lien against someone by mistake. Upon receiving a lien, people typically contact the IRS to ensure its validity. If the lien is not issued erroneously, people may request a tax account transcript from the IRS. Transcripts contain tax assessments, too; sometimes, the amount due stated on liens proves more than the assessed value of property, in which case the IRS simply reduces the lien amount. People can also search for penalties in their tax payments. If penalties exist, according to Forbes, demonstrating good reason for failing to pay may relieve taxpayers from penalty payments and reduce lien payments. Often, the IRS works with taxpayers to establish a payment plan if immediate payment in full proves unaffordable. Other alternatives include paying a past due bill entirely, submitting an Offer of Compromise or letting the tax statute terminate, which may take up to 10 years.

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