A Federal tax lien is an administrative action by the IRS to seize property to satisfy a tax liability. Under Federal Tax law, the filing of said lien attaches to all personal or real property of an individual or company. This also includes property held as Tenants by the Entirety in many Commonwealth states, ie, Michigan, Pennsylvania, Virginia, Massachusetts). A Federal tax levy is the actual seizure of that property. While, having an IRS lien or levy placed on your property, or bank account, can be financially and emotionally devastating for a small business owner or family, we at Santillán Law, P.C. can help you to eliminate the need by the IRS to file the tax lien or execute on the levy.
If a levy is issued against your bank account, the bank is required by law to freeze your assets and give control to the IRS. When that happens, you could find yourself unable to make your mortgage payments, or unable to pay your utilities and other bills, making a bad problem worse. We suggest that you contact a tax attorney to negotiate and/or assist in staying these collection activities by the IRS.