IRS Lien and Levy: What You Need to Know

Last night @kemosabe and I talked about IRS lien and levy actions on a twitter blab. If you missed it, click here to watch.

And if you have questions about IRS liens and levies, please ask in the comments. I don’t publish the comments so they won’t show up on the site, but I will reply (so use a real email address).

 

Lysander

Lysander

Lysander Venible is the author of "On Your Own in Tax Court," a book about how to save your shirt in U.S. tax court. He has been engaged with the Service for over 10 years both administratively and in tax court.

If you have questions, topics or a situation you'd like to discuss, comment below or click the "About/Contact" tab above.

Lysander is not an attorney and it is not his intent to offer legal advice.
Lysander

14 comments to IRS Lien and Levy: What You Need to Know

  • My wife is a retired school teacher. I am on social security.
    state FTB in California is garnishing us. They ignore all we have submitted to them showing we do not owe the tax they think we do.
    Any suggestions on how to stop a state garnishment? We have no lawful obligation to them and have provided to them code, regs, constitution, on and on. I do not think they read what we submit to them. It is easier to use form letters and lien and levy.

    • Lysander

      I would have to know more about your case to be able to comment on it. You can reach me at lysandervenible at startmail dot com.

    • Terry

      I am having the same done to me and my family. After I read “Cracking the Code” by Pete Fredrikson, I filed my taxes and received full refunds from the state and feds. So, I then submitted corrected forms for the previous 9 years seeking refunds of taxes no properly due. The IRS tried to audit me, the state of California fined me 5000 for frivolous returns and tacked on an additional 5000 and sent my employer a form 2905 (no signature or validation what so ever)ordering them to garnish my earnings for 25689 and my ignorant employer complied even though I asked them to request validation and authorization from the FTB but they refused and stated the matter was between me and the STATE!But they still complied to a fraudulent ORDER when a form WG-022 is “Adopted as mandatory” by the Ca Judicial council. I have sent numerous communication without response also! What is there to do? I have been garnished for over 35000 dollars for two years of taxes? Pretty excessive in my book. The State of CALIFORNIA is out of control!!! I am in foreclosure, cannot afford an attorney and my wages are garnished at 1300 a month at least and more when I work over time. I have seen over 900 taken from a bi-weekly pay check because I worked over time. I am presently paying the second such EWOT which is exactly the same as the first on only lesser amount of 18960 dollars. When I get this paid off I am going to file suit against my employer and the FTB!! DAMAGES galore too!!

  • James Hays

    For payment of work done by private contract, Nonemployee Compensation was an expense to a corporation and reported on a 1099 for which a NOD was issued to a natural person. No taxable privilege was exercised. No federal gross income was received & No return filed. IRS intimidated a petition to USTC within 90 days. Now what?

    • Lysander

      Hello James,
      Although I have written a book about it, I do not recommend tax court for guys like you who know the truth. How long ago did you get the NOD? and have you filed a 1040 return? Your answers to those questions will determine your options at this point.

      You can reply to me at lysandervenible at startmail dot com.

  • george

    How long is a lien good for after the year in question?

    • Lysander

      Usually until the collection statute expires, 10 years from the date of assessment.

    • Alvis Jenkins

      George: I see it is now just over a year since seeing your predicament with the IRS. Here is something you apparently did not know about the lien or levy of 26 U.S.C. The lien and levy are “controlled” by regulation which is provided by the United States Government Printing Office in a table of parallel authorities. The regulation that controls both the lien and levy is 27 C.F.R. Part 70 which is only for unpaid and delinquent alcohol, tobacco and firearms taxes, not income taxes. The IRS is notorious for citing a 26 C.F.R.regulation which has no force and effect of law since it is not found in the parallel table of authorities. This action by the IRS is known as acting “under color of law”.

  • I have a lien against me by the irs on job and my credit report.Since then I have been solicited by many attorneys and organizations claiming to help for fees.Along with my job giving them my money.I never went to court never had any due process.How do I right this wrong?

    • Alvis Jenkins

      The lien is not a official lien that the IRS falsely and unlawfully filed against you in your county court with a ignorant clerk of the court who ignores the tax laws of 26 U.S.C. and other federal documents such as the Uniform Federal Lien Registration Act. All federal liens of 26 U.S.C. are controlled by 27 C.F.R. Part 70 regulations which is only for unpaid alcohol, tobacco and firearms taxes. Your employer is also ignorant of 26 U.S.C. or he would not be withholding federal income tax on income you receive that is non-federal income, per subtitle C, Chapter 24, Section 3402.

  • Shane

    Alvis, now that we know the IRS and Employer shouldn’t be garnishing. Whats the quickest way to get them both to comply and stop the garnishment?

    • Lysander

      Shane, once a levy has begun there are several things you can do to have it removed, but you will not be able to have it removed without making some kind of payment arrangement. There is no court that is going to agree that you do not owe the money at this point. And there is no court that will agree that the levy is defective. Your strongest argument would be that the levy is creating a hardship. Such an argument would require that you provide detailed financial information to the Service, and set up an Installment Agreement that you can afford. Alternatively you could be declared “Currently Non-Collectible.” But in such a circumstance, you would probably not be working or have many dependents to care for. Contact me if you would like to talk in detail about your possibilities.

  • Terry

    I sorry Lysander, I must disagree with you on that no court is going to agree that you do not owe the money at this point. In a Court of Common Law, an affidavit of truth submitted should be all that it takes to get the taxman off your case!! (this is not legal advice)

    • Lysander

      Well if you can manage to find a federal common law court anywhere, please let me know how to bring a case to it. In the meantime, don’t count on any federal court finding that you don’t owe taxes on your revenue.

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