"We first selected Gary Bode because of his familiarity with a creative financing scheme for our new small business. During our time with Gary, his insights have helped us better structure our small businesses, save money, and learn to be better small business managers. When it comes to small business accounting, a little hand-holding goes a long way."—Justin and Joelle LeBlancWe’ve published multiple posts on IRS Form 668(Y) and how to remove the IRS tax lien it establishes. One basis for requesting withdrawal of the tax lien occurs when the IRS doesn’t follow its own internal rules for Form 668(Y). This post discusses how often that happens according to a TIGTA report. Here’s the sequence of events typical in an IRS Tax Lien.
- You receive Form 668(Y), Notice of Federal Tax Lien. Form 668(Y) legalizes the lien on your assets, up to the amount of back taxes due. Here’s our past post on Form 668(Y).
- Somehow you satisfy the lien or disprove the lien.
- You submit Form 12277. Here’s our background post on Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.
- The IRS Issues Form 10916(c) which withdraws the lien established by their Form 668(Y)
In this post we look at how often the IRS mishandles Form 668(Y), giving the taxpayer a basis for requesting IRS tax lien removal via Form 12277, Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien.
TIGTA (Treasury Inspector General for Tax Administration) published Challenges Remain When Processing Undeliverable Mail and Preventing Violations of Taxpayers’ Rights During the Lien Due Process, May 13, 2011 Reference Number: 2011-30-051. Here’s the link to their complete report.
Key Point on Federal Tax Lien Removal
From July 1, 2009 to June 30, 2010, TIGTA estimates 32,552 taxpayers had their rights violated because IRS representatives mishandled the IRS tax lien, i.e. 32,552 CPAs weren’t notified that their clients received Form 668(Y).
“Most of the time the IRS is a well-oiled machine. But if the IRS violates its own rules when preparing or delivering Form 688(Y), they can be forced to withdraw the lien.”
-Gary Bode, tax lien CPA and tax accountant
Most Tax Lien Clients call our CPA Firm in Wilmington NC after Receiving Form 668(Y)
Generally, CPAs resolve back tax issues before the lien and levy process. Remember, distance is not an issue for us helping you through the lien withdrawal process. We maintain a virtual office for national and international clients. Read our posts on Form 668(Y), Form 12277 and Form 10916(c) to gauge our expertise and proactive attitude. We offer a free initial phone consult at (910) 399-2705.
