Are you small company owner facing a Federal business tax lien? Although IRS tax liens directed at businesses are not called business tax lien, many owners of small companies use the term business tax lien when looking for help? The goal of the Tax Resolution Institute is to provide reliable tax resolution surfaces for small business owners facing Federal tax liens.

A Business Tax Lien As An IRS Tax Lien

business tax lien

Business Tax Lien A Serious Problem

Business owners are required to pay the federal tax debt owed by their companies on or before the due date. If you do not pay the tax owed, your company could face enforcement action by the Internal Revenue Service. A business tax lien on a company’s property is a first step in the collections process. A business tax lien secures the federal government’s interest in the property against that of other creditors to ensure that the tax obligation is met. The IRS has the right to issue a business tax lien on a business if the owner owes back income taxes or if the business owes corporate back taxes.

If arrangements are not made to pay are not made to pay the corporate back taxes within 10 days of the date on the Demand for Payment Notice, a business tax lien will be filed against the company.  The business tax lien will remain on the business until payment is made in full, a payment arrangement like an Installment Agreement or an Offer in Compromise is reached with the IRS, or the lien is deemed unenforceable due to the fact that the 10-year statute of limitations for collection of the tax bill has expired

A Federal Tax Lien Can Be A Business Tax Lien

A federal tax lien for an individual taxpayer is filed at the residence of the taxpayer. In the case of a business tax lien filing, the residence of the corporation is considered to be the place at which the main office is located. Such a main office is the place where the C-Suite executives are located and where major executive decisions are made. General accounts, accounts receivable and business accounts are all considered property to which the IRS may attach a business tax lien.

If there is joint tenancy, where two or more people or businesses own a piece of  property, the business tax lien is attached to the property interests of the taxpayer who owes the debt. The IRS reserves the right to sell the property to pay the back tax debt of the business. The co-owners of such a property will be reimbursed from the sale of the seized assets once the back tax debt has been covered.

Business Seizure Unlikely, Business Disruption Likely

Although the federal government reserves the right to issue a levy and seize your business if the lien is not satisfied, this is unlikely. The process of seizing a business is more trouble than it tends to be worth for the IRS. Such an asset seizure of an entire business requires that all items, accounts and interests held by the business be inventoried, valued, and eventually auctioned. The IRS would much rather resolve the issue without taking such a step. 

 The Tax Resolution Institute needs you to understand that a business tax lien will attach to all property owned by the business. Such property includes business property, copyrights, stocks, trademarks and patents. A business tax lien will greatly damage your ability to sell your business or refinance any property owned by the business. If you are facing a business tax lien because of unpaid corporate taxes or back personal income taxes owed, the time to take action is now. Please protect your financial future and the future of your business by calling (818) 704-1443 for a free consultation.