HOW SHOULD YOU DEAL WITH REVENUE OFFICERS?

The answer is -- you should not talk with revenue officers - let your representative do the talking. Sadly, many revenue officers operate on fear, operate outside the law, and operate outside the I.R.S. Internal Revenue Manual (the I.R.S.'s policy manual).

The most important thing to remember is never represent yourself and never give the Revenue Service a financial disclosure statement (called a 433-A or 433-F) without first having a competent lawyer, C.P.A., or enrolled agent review it. If you represent yourself the I.R.S. will have all the power in the collection process. An effective representative can usually stop all enforced collection activity and work out an acceptable way to resolve your tax liability.

Do yourself a favor - find a representative that can fully take advantage of all available legal remedies to protect you from revenue officers.

ANNOUNCING MY
NEW WEB PAGE AT
www.ATaxLawyer.com

Check out my new web page which is scheduled to be completed sometime around June 30, 1999. Besides getting useful tax information, you can read all my past newsletters.

I.R.S. NOTICE OF TAX LIEN: WHAT DOES IT MEAN AND WHAT CAN YOU DO ABOUT IT?

If you get this newsletter, then the I.R.S. has filed a Notice Of Tax Lien against you in either Los Angeles County or in Orange County. Filing a Notice Of Tax Lien is the first step the I.R.S. usually takes when it plans to conduct enforced collection activity to collect the tax, interest, and penalties that are due. When the I.R.S. files a Notice Of Tax Lien, it must tell you it did so within five days in person or by certified or registered mail.

An I.R.S. tax lien "attaches" to any property you have a legal interest in, including real estate and personal property (intangible and tangible). Usually, this means that any sale proceeds from any of your assets must go first to secured creditors (ie. car loans, home loans, equipment loans) and second to the I.R.S. before

you get any of the sale proceeds. If you try to refinance your home, you will discover lenders will deny your loan application unless the I.R.S. tax lien is removed. Sadly, even if you file for federal bankruptcy protection, the tax lien will survive after your bankruptcy case ends.

What Can You Do About It?

The basic rule is that you must either pay your tax liability in full or post a bond guaranteeing full payment. However, it is possible to get an I.R.S. tax lien removed in other ways, the most common of which include:

* where the I.R.S. procedurally makes an error (ie. failing to first assess a tax due, filing a lien after a collection due process hearing has been requested, or when the property does not belong to you);

* a successful offer in compromise;

* when the property has little or no equity; and

* when removing or subordinating the lien facilitates collection of the tax liability.