Question: I am a small business owner who would like to challenge the business tax lien filed against me. How do I do so?
Response: The IRS is required to notify the business owner not more than 5 business days following its filing of the business tax lien. The business owner can file a request for a hearing and present his issue. Some of the most common issues that a business owner can raise at the Collection Due Process hearing are as followed:
- He or she wants to claim a spousal defense;
- There was no opportunity to challenge the assessed liability;
- He or she would like to discuss the collection options;
- The assessment contains a procedural error;
- The tax was assessed and the lien was filed when the business owner was in bankruptcy and the automatic stay during bankruptcy was in effect; and
- All debts were paid prior to the filing of the lien.
Upon termination of the hearing, the IRS Office of Appeals will issue a ruling either affirming the validity of the currently-filed business tax lien or ordering its withdrawal or release.
Answered by Yara Zhakaria
Additional Resource:
- Business Tax Help
- Releasing a Lien
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