If you are a factor and your clients have delinquent tax debts with the IRS, it can be a big problem. The Tax Resolution Institute specializes in helping factors and their clients resolve income tax debts to keep their business relations moving forward. After all, an IRS tax lien once filed moves the IRS to the head of the pack of debt collectors, setting the very heart of an invoice factoring financial relationship in jeopardy of being honored.
IRS Tax Liens And Accounts Receivables Financing
If a client owes IRS back taxes and you have not made payment arrangements with the Internal Revenue Service, the IRS has the authority to issue a tax lien against that client’s assets, including those they have used as collateral for invoice factoring loans in the form of accounts receivables financing. In certain cases, lien notices have been ignored by your client, and it feels to you like the IRS has gone straight to the intent to levy stage of the process. If action is not taken at this point, the IRS can take possession of a client’s assets that have been factored if they do not make payment or appeal the intent to levy notice within 30 days.
What is even worse is that the IRS often makes a wrongful levy like in cases when a lender already has a prior secured interest or lien on the accounts receivable or other financial or physical assets. The IRS does not conduct a lien search prior to issuing a levy. As a result, the IRS does not know whether the assets on which it intends to levy are being used as collateral. Even if the IRS levy is wrongful, and the IRS had no legal right to those assets, it can be very difficult and costly for you to get the assets that were secured to you in an accounts receivables financing agreement back from the IRS.
IRS Tax Lien Info For Invoice Factoring Firms
If you are experiencing any of these back-tax-related problems with your clients, the Tax Resolution Institute can help. We have access to up-to-date information on IRS liens, levies, tax compliance history, business name discrepancies, accrued tax liabilities, and IRS installment agreements. We can figure out exactly what the situation is with your factoring client, then help them find a workable tax resolution solution with the IRS.
Our goal when it comes to invoice factoring firms is to help you and your clients or potential clients stay in business by resolving delinquent income tax debts. Ideally, these will be resolved before they go to the tax lien, bank levy, wage garnishment or asset seizure stages of the process. If it has progressed to one of these points, the Tax Resolution Institute can help as well. If you want to know more about how the Tax Resolution Institute can help your factoring firm, please contact us for a free consultation by calling 800.401.5926 or filling out our online contact form.
About Peter Y. Stephan
Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.