Owe Payroll Tax - lien on property
I owe payroll tax and the IRS filed a lien on my property and levi on my bnk account. I have 3 questions:
1. I am trying to sell my property to pay these taxes. Will the lien be a hindrance at closing time?
2. The assessment to me is too much - I am pretty sure that I don't owe that much. How can I contest this?
3. I am unemployed for a year now. I can't afford to pay the tax in full and hire an attorney. I would like to make scheduled payments. How should I go about dealing with the IRS given this my hardship condition.
Thanks.
1 Answer from Attorneys
Re: Owe Payroll Tax - lien on property
First of all, payroll taxes subject you (and others who were deemed responsible for paying them) to a 100% penalty - that's most likely why the assessment is so high.
Secondly, in most cases, if you are trying to sell your property, the IRS will work with you if it thinks that it will get more through a Fair Market sale rather than a quick sale such as a sheriff's sale. There is a liens and levies division at the IRS that handles this type of sale. Talk to your real estate attorney about the effect of the lien on a possible sale.
Was the payroll tax the result of your own business, or one that you were simply involved in? Are there other people who are being held responsible for the tax as well? If so, what are they doing about it?
You may be able to reduce the amount of taxes you owe, and enter into an installment arrangement for payment over time, through an offer-in-compromise. Whether one can be successful depends on your current and future income, assets, your age, health, family expenses, etc.
Feel free to contact me directly if you would like to discuss your situation in greater detail.
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