Unpaid Federal Taxes, Lead to Federal Tax Liens

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Proving that celebrities are not above the law, the IRS recently served rapper Lil’ Kim with a tax lien for allegedly dodging more than $1 million in taxes.

While it is celebrity tax stories that most often make the headlines, businesses and individuals frequently face the serious consequences of having a tax lien filed against them when the IRS determines that federal taxes have gone unpaid. A lien gives the IRS a legal claim to all of a taxpayer’s property as security for tax debt.

The IRS will send a Notice of Federal Tax Lien only after:

• It assesses a tax liability;

• It sends the taxpayer a Notice and Demand for Payment, which details the amount of taxes owed; and

• The taxpayer neglects or refuses to fully pay the debt within 10 days after the Notice and Demand for Payment is sent....

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