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An IRS tax lien is rarely the first action the IRS takes when a person or company has tax issues. The key to avoiding it is obtaining help to talk constructively with the IRS about what taxes they believe are due, and either arrange to work with them or show them why their assertions aren't so. Representation is important in tax situations because of the complexity of the tax laws. Talking with the IRS directly can also cause problems through miscommunications or misunderstandings that complicate the situation. Taxpayers may also make the mistake of giving the IRS more information than is necessary. The IRS could act further based on information they've gained when talking directly with the taxpayer. On the other hand, professionals can help prevent a simple tax issue from becoming a significant problem. The lien process begins when someone receives a letter from the IRS. They may indicate they don't have the payments or annual returns that they expected or give an update of accounts due. Ignoring these communications can cause further collection actions. These can lead toward the filing of an IRS tax levy or lien if there's no change in the account. A representative can contact the IRS on the taxpayer's behalf. Using knowledge of tax laws and the IRS' own rules they can not only avoid a tax lien, but also find a solution to the problem that may be better than expected. Submitting an "Offer in Compromise" may result in a deal that reduces taxes owed to something more manageable. A payment plan is an option as well. Once an IRS tax lien is in place, things can get difficult. Combined with wage and bank levies, funds available to continue operating a business and live a normal lifecan be very limited. Banks and businesses who must comply with IRS levies incur additional burdens, affecting financial and business relationships and causing a variety of credit problems. It's best to avoid this situation. Tax professionals encounter a wide variety of situations. They're used to helping people get their lives back on track. They can get copies of tax records, help organize and file returns, work with the IRS to prevent further problems and, most of all, keep tax lien worries off the taxpayer's mind. *This is not a solicitation for legal services. *
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IRS tax lien, tax liens, dealing with tax liens,
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