There is an enforcement tool commonly used by the Internal Revenue Service it called the general tax lien. It is invisible. Revenue officers use this tool consistently; being well-versed in lien law, they can usually operate this tool with smooth precision.
Recorded in Internal Revenue Code 6321, this lien arises when any person liable to pay any tax fails, neglects or refuses to pay, period. The lien is in force. Period. Further, it is said to be a “choate lien or a perfected lien,” meaning that nothing more need be done to make it enforceable.
This makes those that obtain notice from the IRS and are uninformed easy prey because they fail to realize the effect or extent to the lien. Many minorities – African-American, Hispanic – become delicious and easy prey.
If you owe IRS, the invisible veil is in existence whether you acknowledge it or not. Additionally, “the veil” covers all your assets, real estate and personal property. For example, your personal residence, rental property, boats, cars, stocks, bonds and such and such, are all subject to a NON -EXISTENT document.
Yet it is invisible. The lien is effective once the IRS bills or notifies you for the payment. The requirement is to bill or notify you.
The requirement of IRC 6321 is not for you to read the notice, because whether you read it or not it is effective. It is effective whether you understand or not; it is effective if you lay it on the dresser in the bedroom, let the dog eat it or just pretend it did not actually mean what it says.
The IRS has the authority to enforce collection based on the general tax lien cited in IRC 6321.
It is invisible. It is not posted anywhere. You cannot see it on the house, your business, nor do you notice it on your account receivables, but it is there. The IRS has vested in it the power to seize a bank account or your wages based an “invisible document.”
This sounds a bit like science fiction, until it is you attempting to operate without a paycheck, an account receivable or bank account.
I have witnessed this document change the lives of those that it affects. It makes you unable to pay creditors, and it does not bow to circumstances. It is mechanical, methodical; further, its power can be overwhelming.
However, the Notice of Federal Tax Lien provided by IRC 6321 wields more damage, because the “notice” of federal tax lien is published in the county paper and recorded at the Recorder of Deeds Office in the county where the taxpayer is located.
That’s right. It is put in the newspaper, usually a business journal, and recorded at the Recorder of Deeds. It is a public document. It goes on your credit report, and depending on how you fight it, it remains.
The lien can be removed/negotiated from certain assets:
- Discharge of the Federal Tax Lien – which equates to a sale.
- Subordination of Federal Tax Lien – which equates to loan on certain assets
- Release of the Federal Tax Lien – which equates to full payment or in offer in compromise.
Should you receive a notice from the IRS, do not ignore it. Get professional help. Get going. It is alive.
Alma M Scarborough of Scarborough’s Tax Affair is an enrolled agent, tax consultant. Visit www.taxhitlady.com, email taxhitlady@sbcglobal.net or call 314-621-1402 .
