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Unless the taxpayer filed a bankruptcy within that 10 years.
Tax Liens On WHole Life
- Thread starter theinuranceguy
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- whole life
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I am not trying to be rude - but I would think a Tax Attorneys charge would be nominal to resolve something like this. Is it worth risking the outcome to pay $500 to $1500 in nominal Attorneys expenses?
I understand trying to help out a friend, that shows your character - you are a good person, but is it worth the risk to do this without some help? There could be more to the story is my only point.
I understand trying to help out a friend, that shows your character - you are a good person, but is it worth the risk to do this without some help? There could be more to the story is my only point.
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I agree 100%. We thought this would be a simple phone call and poof it would be fixed. I did tell them to contact an attorney, b/c I dont know much about this subject and am not in a position to give legal advice.
I did however tell them I sell annuities, lol, JK they already knew that.
Unless the IRS renews the lien... Which sometimes they do and sometimes they don't. It depends on the district offc of the IRS and how up to speed they are... Each time they renew the lien, the 10 yrs starts over... Your understanding of the filing of fed tax liens is way short.
Read below, and if you want more info, click on the link below for the tax Atty who wrote this...
Under some circumstances, a lien must be "refiled." To remove any uncertainty about whether a lien is still enforceable when the notice shows the assessment is more than ten years old, the IRS is required to refile its notice of tax lien within a one year period ending ten years and 30 days after the date of the assessment.8 Failure to refile at the appropriate time does not affect the validity of the lien, but it does nullify the legal effect of the prior filing. In the case of a late refiling, any security interest arising after the prior filing but before the refiling obtains a priority to the same extent as if no notice of tax lien had been filed prior to the time of the late refiling.
Federal Tax Liens
The folks are pretty much stuck here... based on what I understand of your post. There is quite a bit of BAD INFO in this post, which you would do well to ignore...
The fact that the lien is not recorded... means nothing. (IRS liens only, but it doesn't eliminate their claim against the property but may effect only the priority of lien claimed, when other creditors are in the mix).
Hopefully the DBen exceeds the IRS claim or they won't get anything. They may have sufficient ground to negotiate with the IRS for the amount of the C/V, plus fees, which could leave some unencumbered D/B remaining for the family... Maybe.
Read below:
Life insurance proceeds are generally not subject to the federal tax lien, because the proceeds are paid only on death and therefore are not owned during the taxpayer's lifetime.25 The cash surrender value of a policy, however, can be reached by the lien. Indeed, it remains encumbered even after the death of the insured, and the Service can recover from the policy proceeds to the extent of its lien on the cash surrender value.
Kovacs v. U.S. 355 F.2d 349 (9th Cir. 1966), cert. denied, 384 U.S. 941 (1966).
Burton J Haynes, Esq. Federal Tax Liens
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No bearing on the issue whatsoever.
The IRS debt cannot be discharged in BK.
Didn't say the debt could be discharged, implied that the IRS statue of limitations is impacted by a BR, it extends the 10 year period, I would say that has a HUGE bearing on the issue my friend, whatsoever! Check the regs.
The IRS debt cannot be discharged in BK.
Didn't say the debt could be discharged, implied that the IRS statue of limitations is impacted by a BR, it extends the 10 year period, I would say that has a HUGE bearing on the issue my friend, whatsoever! Check the regs.
I would say that I am NOT an Insurance expert, still lots to learn, or re-learn, as the case may be... but I am pretty much of an expert in Tax Liens... I have successfully negotiated the "pants off the IRS many times". Oh, knowledge of collections with the IRS isn't complete without having working knowledge of the BK laws...
Your notion of this 10 yr maximum for a tax lien being collected is poppycock. The lien is renewable and can be renewed infinitum...
Bk has no bearing on this matter, other than it would "stay" the collection efforts while the Bk was active. Once the Bk is discharged, the collection process begins again, as it relates to the IRS. The debt or obligation simply isn't discharged, as with most other debts.
You might want to read the link that is posted above, regarding tax liens... it may clear up some misconceptions for you.
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Bk has no bearing on this matter, other than it would "stay" the collection efforts while the Bk was active. Once the Bk is discharged, the collection process begins again, as it relates to the IRS.
Apparently I wasn't clear in my posts. A BR extends the collection period, as I thought I explained. Reread the posts and perhaps you will understand what I was stating.
Apparently I wasn't clear in my posts. A BR extends the collection period, as I thought I explained. Reread the posts and perhaps you will understand what I was stating.
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This was also in the article.
A lien is an encumbrance in favor of one party upon the property of another, in this case a "statutory" lien based on �6321 of the Internal Revenue Code.2 The lien arises when the taxpayer fails to pay any tax after a demand by the IRS for payment. The lien "relates back," and is thus effective from the date of assessment, and it continues in force until the assessment is satisfied or becomes unenforceable by reason of lapse of time,3 as for example by the expiration of the statute of limitations on collections.4
Duration of the Federal Tax Lien
A lien is an encumbrance in favor of one party upon the property of another, in this case a "statutory" lien based on �6321 of the Internal Revenue Code.2 The lien arises when the taxpayer fails to pay any tax after a demand by the IRS for payment. The lien "relates back," and is thus effective from the date of assessment, and it continues in force until the assessment is satisfied or becomes unenforceable by reason of lapse of time,3 as for example by the expiration of the statute of limitations on collections.4
- IRC �6322.
- IRC �6502. The statutory period was increased from six years to ten years by the Revenue Reconciliation Act of 1990, effective November 5, 1990, and can be extended in various ways, such as by the execution of an extension agreement, or by the filing of an offer in compromise or a petition in bankruptcy.
Duration of the Federal Tax Lien
- The federal tax lien continues until the liability for the amount assessed is satisfied or becomes unenforceable by reason of lapse of time, i.e., the collection period expires. IRC § 6322. Generally, after assessment, the Service has ten years to collect the tax liability. IRC § 6502. However, there are some circumstances which may extend or suspend the ten-year collection period.
- IRC § 6502 provides for an extension of the collection period in 2 situations. Collection action may be taken if:
- the statute of limitations was extended at the same time an installment agreement was entered into. In this case, collection action may be taken until the 89th day after expiration of the installment agreement. IRC § 6502(a)(2)(A).
- release of a levy under IRC § 6343 is accompanied by an agreement to extend the statute of limitations to a specific date and that date has not yet passed. IRC § 6502(a)(2)(B); Treas. Reg. § 301.6343-1(b)(2)(ii)(D).
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