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.

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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Form 668(Y) CPA explains the Federal Tax Lien for Back Taxes

Gary Bode, CPA: Once you receive Form 668(Y), you need professional tax help. If you’d like a free initial phone consult, please call 399-2705.

Form 668(Y) CPAs field calls from agitated new clients after they receive the infamous Notice of Federal Tax Lien. My besy advice, avoid a federal tax lien whenever possible. Why?

  • Federal tax liens establish the IRS’ legal claim to your property as collateral against your tax debt.
  • The IRS then has first “dibs” on some of your assets.
  • Form 668(Y) becomes a public record and the Tax Lien appears on your credit reports, dropping your FICO credit up to 200 points.
  • Potential employers pass you by.
  • The federal tax lien stays on your credit report for years, even if you’ve completely paid it off.
  • Here’s one of our past posts on how to get the federal tax lien withdrawn early using Form 12277.

Hi, Im Gary Bode, a tax lien CPA with a virtual office to serve you, or your company, regardless of location. We practice in every state except HI. While we generally advocate self-sufficiency, once the IRS issues Form 668(Y), you probably need professional CPA help.

What’s the Difference between a Tax Lien and a Levy?

The tax lien established by Form 668(Y) puts a hold on the listed assets, up to the amount on the lien. Eventually the IRS will levy or seize these assets and sell them to satisfy the back taxes due.

Back Taxes – Sometimes Taxpayers are due a Refund!

A tax lien, in my opinion as a CPA, is the last attempt of the IRS to gain your attention, generally about taxes due from un-filed returns. Incredibly, once we prepare the back tax returns, a taxpayer refund often exists. Why? On un-filed back tax returns the IRS calculates the taxes due from the revenue information they’ve collected. But they don’t factor in things like legitimate deductions and tax credits. Here’s our earlier post on back tax resolution.

“My concern is getting you into compliance as inexpensively and stress free as possible.”
- Gary Bode, Form 668(Y) CPA and federal tax lien accountant

IRS Tax Lien Release - How a Tax Lien CPA approaches Form 668(Y)

The IRS recently relaxed its tax lien policies. But Form 668(Y) explicitly says that the IRS has lost patience with you. Common steps we take include:

  • Obtaining power of attorney for us to talk to the IRS about you – usually through both Form 2848 and Form 8821.
  • Carefully listening to your side of the dispute. We’re your advocate.
  • Requesting a delay on the Levy process. Generally the IRS recognizes a CPA needs time to help you satisfy them.
  • Gaining a complete understanding of the IRS’ position.
  • Checking the IRS figures. They’re not always correct.
  • Preparing un-filed back tax returns. This usually lowers amount due the IRS.
  • Understanding your current financial condition. CPAs generally help manage cash flow during the federal tax lien process.
  • Filing Form 12277. Here’s our past post on Form 12277, Application for Withdrawal of Filed Form 668(Y).
  • Obtaining a retainer. In these cases we get paid in advance. After all, there is no more powerful creditor than the IRS. Except maybe the local loan shark.

Common Techniques for Tax Lien Release

  • Checking that the IRS followed their own rules. If not, the lien must be released.
  • Preparing back tax returns to cut your liability.
  • Preparing Form 656, Offer in Compromise. This is the infamous “pennies on the dollar” technique as seen on late night television. An Offer in Compromise, when appropriate, is a powerful tool. Here’s our past post on Form 656, Offer in Compromise and the related Form 433-B.
  • Entering into an Installment Agreement via IRS Form 9465. Here’s one of our past posts on Form 9465 and Installment Agreements. You may not even have to pay off the entire amount to have the tax lien released! Or, sometimes, not even provide an IRS collection statement.
  • Paying off Form 668(Y) in full. A good trick that requires careful financial planning.
  • Allowing the IRS to seize the liened assets.
  • Asserting that withdrawal of the lien will speed collecting the tax.
  • Asserting that withdrawal would be in your best interest (as determined by the Taxpayer Advocate), and in the best interest of the IRS.

IRS Information on Form 668(Y)

  • Publication 783, Instructions on How to Apply for a Certificate of Discharge of Property from a Federal Lien.
  • IRS Publication 784, Application for Subordination of Federal Tax Lien.
  • Publication 1450, Request for Release of Federal Tax Lien.
  • The IRS website provides a nice over view of Form 688(Y) and associated issues.

We’re a CPA firm in Wilmington NC but serve a Wider Geographic Base through our Virtual Office

IRS Form 668(Y) deserves competent CPA attention. Our virtual office serves national and international clients. Call us for a free initial phone consult at (910) 399-2705.

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