Receiving any correspondence from the IRS can be stressful, but when a taxpayer receives IRS Letter 3172, the stakes are especially high. This notice serves as a formal notification that the IRS has filed a Notice of Federal Tax Lien (NFTL) against the taxpayer. Understanding what this letter means and how to respond is critical. Fortunately, Steve Perry, EA, of Books Taxes & More, has extensive experience guiding taxpayers through this challenging process.
What is IRS Letter 3172?
IRS Letter 3172, officially titled “Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320,” informs the taxpayer that a lien has been filed against their property due to unpaid tax debt. The lien gives the IRS a legal claim to the taxpayer’s current and future property, including real estate, financial assets, and personal property. The purpose of the lien is to protect the government’s interest in the taxpayer’s assets as they attempt to collect the outstanding debt.
This letter also outlines the taxpayer’s right to request a Collection Due Process (CDP) hearing. This hearing is a crucial opportunity for the taxpayer to contest the lien, propose alternative resolutions, or negotiate a payment plan.
The Consequences of a Federal Tax Lien
A federal tax lien can have significant consequences. It may impact credit scores, hinder the ability to obtain loans or credit, and complicate the sale or refinancing of property. Additionally, the public record of the lien can create personal and professional embarrassment. Ignoring IRS Letter 3172 is not advisable, as failing to act can result in more aggressive collection actions, such as levies or garnishments.
How Steve Perry, EA Can Help
Navigating the complex procedures associated with IRS liens requires specialized knowledge. Steve Perry, EA, brings years of experience as an Enrolled Agent authorized to represent taxpayers before the IRS. He offers the following assistance:
1. Review and Analyze: Steve thoroughly reviews the taxpayer’s IRS records and Letter 3172 to verify the accuracy of the tax debt and lien filing.
2. Request a Timely CDP Hearing: The letter provides a limited window to request a hearing, typically 30 days from the date of the notice. Steve ensures that this request is submitted accurately and promptly to preserve the taxpayer’s rights.
3. Develop a Strategy: Steve works closely with the taxpayer to develop a resolution strategy, which may include an Installment Agreement, Offer in Compromise, lien subordination, withdrawal, or discharge, depending on the circumstances.
4. Representation at the Hearing: During the CDP hearing, Steve represents the taxpayer, presenting arguments, documentation, and proposals to IRS Appeals. His experience allows him to advocate effectively for the most favorable outcome.
5. Ongoing Support: Even after the initial response, Steve continues to guide the taxpayer through subsequent steps until the matter is fully resolved.
Take Action Today
IRS Letter 3172 is not a matter to delay or handle alone. With the right representation, taxpayers can often achieve a manageable resolution and protect their financial future. Steve Perry, EA, and Books Taxes & More stand ready to help. Call today at 678-717-9818, to schedule a consultation and take the first step toward resolving your tax issues with confidence.
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