IRS Tax Lien vs. NY Tax Warrant [ Answers to 4 FAQs ]

If you have either an IRS tax lien or New York State tax warrant, it is likely that you have a back tax problem of some sort. 

At some point, a tax was assessed against you, whether it was income, payroll, or sales tax.

The tax may have been assessed due to a tax return that you filed or perhaps that the taxing authority filed a tax return on your behalf ( if you had unfiled tax returns).

The tax may have been assessed as a result of an error on a tax return.

The tax may have been assessed due to an audit.

Regardless of how the tax was assessed, the IRS or New York State Tax Department is claiming that you owe them tax money. 

After the tax was assessed, you were sent a billing notice, with the amount that was due. 

The billing notice from the IRS or NYS went to your last known address. 

If you moved and did not update your mailing address or forward your mail,  you still owe the tax. 

In fact, NYS will chase you across state lines. You can’t claim you didn’t receive the mail.

The billing notice(s) went unpaid. 

A tax lien was filed. If you need help solving your IRS or NY tax problem, contact us today. We can assist you regardless of location.

Federal tax lien vs. NYS tax warrant

A federal tax lien is the United States government claim to your property. 

Property can include real property, investments, wages, cars, and anything else you can likely think of.

It is extremely powerful as it attaches to everything you own now and in the future. 

A federal tax lien will be issued by the Internal Revenue Service(IRS) as the IRS is the government agency that enforces federal tax matters. 

The tax lien arises automatically by law under IRC Section 6321.

The IRS does not have to send you a notice for a lien to arise.

A New York State tax warrant is a tax lien pertaining to a tax liability.

It is a legal judgment against you.

Neither the federal government nor New York State need to go to Court like other creditors to pursue you from a financial standpoint.

The tax lien and NYS tax warrant allows the taxing authorities to begin enforcement action against you.

Why Did You Receive a Notice of Federal Tax Lien?

If you owe back taxes to the IRS, you may receive a Notice of Federal Tax Lien at some point in the collection process from the Internal Revenue Service.

The public notice lets other creditors know that the federal government is first in line to collect from you. 

For example, if you own a home and you want to sell it, the title report will pick up the tax lien and it will likely scare the buyers away.

A tax lien ( as well as NYS tax warrant ) is a matter of public record. 

Once the tax lien or warrant is filed, you will get dozens of letters and calls from tax resolution companies making false claims about what they can do from you.

May of these unscrupulous companies will make the letters look like they are coming from the IRS or New York State Tax Department so that you call the phone number on the notice.

Why Did You Receive a NYS Tax Warrant?

Consequences of a Tax Lien

In the most extreme cases, a tax lien or warrant can result in the potential foreclosure of a property or business by the IRS or New York State taxing authorities to recover the taxes owed.

The taxing authorities would rather not foreclose on property and first  seek the low hanging fruit of enforcement which includes but is not limited to: bank levies; wage garnishments; and if you own a business the seizure of merchant processing. 

Help with Your Tax Lien or Tax Warrant

To remedy your federal tax lien or NYS tax warrant, we will need to remedy your underlying tax problems.

Tax problems are complicated but every tax problem has a solution.

The tax attorneys of the Tax Problem Law Center can possibly be of help in putting your tax problems behind you, once and for all. 

We implement the best strategy to protect you and solve your tax problems for good.