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We prepare most type of tax returns:

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S Corporation.

C Corporation.

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Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

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Client Testimonials

I used Gary’s services to file my 2012 income tax return. This was my first year having an accountant do my return, as I have always done it myself using TurboTax. However, this year I had cancelled debt from my old primary residence which I was forced to convert to a rental property after relocating out of state.

While it didn’t cost me anything to do the short sale, the income tax consequence from the cancelled debt, roughly $50,000 in my case, was enough to move me from the 15% tax bracket to the 25% tax bracket.  Needless to say, I was concerned about that.

Finances were already tight and my husband and I are expecting our first child this fall. So the possibility of owing income tax was stressing me out. However, Gary was great at relieving my fears.

He is extremely knowledgeable, answered all my questions and was very thorough. I knew I was in good hands. He kept in constant contact with me throughout the process, keeping me updated on the progress of my return and letting me know what paperwork he needed to complete my filing.

In my mind, best case scenario would have been to not owe any taxes. Second best would be to only owe a little. Well, you can imagine my surprise and delight when Gary told me I was actually due a refund of a little over $2,700.00!

To top it all off, I found Gary’s fee for service to be fair, competitive and affordable; especially given the complexity of this type of return. I am so glad I did not try and go it alone this year. I am extremely pleased with Gary’s service and would recommend him highly to anyone, in fact I already have. If you have cancelled debt from a short sale or foreclosure, don’t freak out. Take a deep breath and call or email Gary. I am grateful I did.

Angie Falke of Holiday, FL

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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Form 12277 CPA discusses the Federal Lien Withdrawal Process | Forms 668(Y)(c) and 668(Z)

Form 12277 CPA, federal tax lien Form 668

Gary Bode, CPA: it’s best to call a federal tax lien CPA before the lien when you still have some options. (910) 399-2705.

IRS Form 12277 CPAs hear a lot of confusion about the federal lien withdrawal process. Here’s the three forms usually involved:

  • Form 12277 (Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.
  • Form 668(Y)(c), Notice of Federal Tax Lien.
  • Form 668(Z) , Certificate of Release for federal tax lien.

How does the IRS name these things?

There’s generally lots of IRS communication before they place a lien. So, Form 668(Y)(c) usually doesn’t surprise folks. I prefer to prevent a lien, but certainly know that’s not always possible. Sometimes a CPA can get them to delay it. Once the IRS places a lien, they Perfect it, which means they get top dog status as a creditor. Perfection takes place in the local Register of Deeds office. Once the federal lien is in place, it appears on your credit report. Nothing is worse on a credit report then a federal tax lien. Period.

“Hang on to Form 668(Y)(c) and Form 668(Z); you’ll need them to file Form 12277.” 
– Gary Bode, Form 12277 CPA

Next, folks wrestle with how to pay the lien. Often that’s with Form 9465, an Installment Agreement. If so, let them automatically debit your bank account for the payments. Why? A good track record of debit payments for Form 668(Y)(c) helps when you file Form 12277. How long is long? It depends. Each case is different.

Federal Lien Release vs. Withdrawal

Releasing the lien occurs when you’re fully paid off. They’ll send you a Form 668(Z). But it still appears on your credit report for seven years. Ouch! You’d think the withdrawal of the lien would be automatic, but it’s not. However, in the last few years, withdrawal is almost a given, if you’ve paid up, once you file Form 12277. So a Form 12277 CPA isn’t always required. But some clients prefer us to do it and the cost is modest. Remember the IRS has its own rhythms: folks get impatient waiting for them. The only thing to do is keep calling.

Filing Form 12277 before you’ve paid off the Lien

This isn’t a given. Here a Form 12277 CPA is useful because we know a bit more about what conditions the IRS will accept to withdraw the lien. And of course, there’s really no incentive for them to do so. Sometimes it works, sometimes it doesn’t. If you do use a Form 12277 CPA, make sure he/she signs off on it. A CPA is the signature box probably helps.

I’m a Form 12277 CPA with a virtual office to serve you wherever you live. If possible, call us before the lien is Perfected. We offer a free phone consult at (910) 399-2705.

 

2 comments to Form 12277 CPA discusses the Federal Lien Withdrawal Process | Forms 668(Y)(c) and 668(Z)

  • Athena Olinger

    Hi. I ran across your article and am interested in obtaining your services. Before I go into my situation I first need to know if this is still an active link. I know sounds weird but there’s nothing worse than writing the details and never hearing back. I need a couple of tax liens withdrawn and help with a offer and compromise doubt of liability and I think it’s better if I have a CPA handle it.

    Thank you,

    Athena Olinger

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