How Threatening is the IRS Collections Notice I Just Received?

IRS, Tax Liens, Taxes

Almost everyone calls me in a panic after receiving a collections notice from the IRS threatening to levy on their bank account, attach their wages, or put a lien on their house. They all think it will happen immediately: “Please call me back ASAP because the IRS gave me a deadline of tomorrow/next week/10 days!!” Um, no. Chances are, you’ve got many months, if not years, until the IRS pursues aggressive collections action. Read more »
March 14, 2025

What Happens to California Homes with IRS Liens in Bankruptcy?

Bankruptcy, Bankruptcy Procedure, Pre-Bankruptcy Planning, Tax Liens

Many debtors in California file chapter 7 bankruptcy with a home that has an IRS tax lien on it. What happens in these cases? If the IRS has a federal tax lien on real property in California prior to a bankruptcy being filed, then that lien will survive bankruptcy. In other words, debtors cannot use bankruptcy to escape an existing federal tax lien on a California property, despite the fact that California bankruptcy law allows chapter 7 filers to take up to $678,000 in equity in a primary residence through bankruptcy. Read more »
June 14, 2023