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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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I have an IRS question. I have a 1040 tax due to the IRS for

Customer Question

I have an IRS question. I have a 1040 tax due to the IRS for the yr 2016. I filed a request for an extension--w/o making a payment. The tax return filed on time. The IRS informed me on 5/23/17 that they were filing a lien on my property.That is barely over one month past the due date. Is this normal?
Submitted: 1 month ago.
Category: Tax
Expert:  emc011075 replied 1 month ago.

Hi. My name is ***** ***** I will be happy to help you.

Extension extends your time to file a return, not to make a payment. If you did not pay by April 15 you are late. Also, 90% of your tax liability is due by December 31 (January 15 if you make estimates), not April 15. If you owe more than 10% of your tax liability than you are late over 5 month. Once you file a return the extension is canceled. Unless it is your first offense, the IRS moves pretty fast with the collection process.

Customer: replied 1 month ago.
90% of my taxes are due by 12/31???? I am 64 yrs old--I have taxes on 4/15 or before for almost 50 yrs & I have never heard of that. So for almost 50 yrs I have been paying late? My accts have never said that & I bet 95% or more people don't pay by by 12/31. With due respect----you are just plain wrong.To the issue----according to your #'s ---is it normal for the IRS to file a lien on a property for a tax that is 5 mo overdue?
Expert:  emc011075 replied 1 month ago.

Correct. 90% of the current year tax liability or 100% of the last year tax liability is due by December 31 otherwise you are subject to underpayment penalty. There will be no penalty if you owe less than $1000.

A lien is not a levy. A lien only means that that IRS will gets its share when you try to sell it. A lien is usually one of the first steps in collection process. It is not unusual for the IRS to place a lien if you apply for installment agreement or offer in compromise.

Customer: replied 1 month ago.
all of the people who are paying their taxes on 4/15 are in violation of the tax code? Where does that appear in the tax code?Please answer my question--in your experience is it unusual for the IRS to file a lien on property for taxes 5 mo overdue?In my case it is only 7k & I offered to make 3 payments over 60 days. They said on the spot. In this case a lien is insignificant as I will pay it in the 60 days I proposed & the lien will off---it's goofy.
Customer: replied 1 month ago.
Ok--I can't wait around for you--probably trying to find what you told me about in the tax code----which it isn't.I can't pay you for this---wrong info & leaving me hanging. Be careful what you tell people---you could get bad ratings.
Expert:  emc011075 replied 1 month ago.

All people who are paying taxes in April do not owe more than 10% or less than $1000 OR are penalized for not making estimated payments (underpayment penalty). It is not unusual for the IRS to put a lien on a property to make sure you do not sell or transfer valuable asset to children or relatives or declare bankruptcy. It is usually done early in the collection, generally within 30 days of the first notice. You can request a withdrawal but you will need to pay off he balance or agree to an installment agreement.

I have part time job outside the house so I am not always available 24/7. I have 24 hours to respond to your questions and the information provided is correct: https://www.irs.gov/publications/p505/ch04.html . I am sorry if the answer is not what you expected, I do not make the rules.