Have a Tax Question? Ask a Tax Expert
No, installment agreements do not prevent liens. A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
The IRS may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:
As long as you pay on time the IRS does not take collection action (like seizing your account).
What usually happens is you pay off the tax owed and the IRS removes the lien. The lien is just to make sure that if you do not pay they can take action to receive the remaining amount.
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Yes, if you do not pay they can.
The IRS only takes collection action if you do not honor the installment agreement.
Yes they could take your car and if the business is sole proprietor yes they could take the assets of the business BUT
only if you do not stick to the agreement.
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