How Tax Authorities Can Collect Your Back Taxes
If your tax bill goes unpaid and you don’t make arrangements to pay your debt before the due date, the first step in the forcible collection of your debt is a tax lien on your Denver-area business, which is how the IRS protects the debt.
A lien is a legal claim against your business assets, filed via a public document known as a Notice of Federal Tax Lien. The lien alerts creditors and finance companies that the IRS has a legal right to your property to the extent of tax you owe and remains in effect until the taxes are paid in full or other arrangements are made.
A lien is public record, which means your customers or even potential customers can see you’re having tax issues.
Once a federal or state tax lien is filed, you may also face the possibility of a tax levy to legally seize your company’s properties and assets, including your bank accounts, accounts receivable and business property and equipment. Think of the impact the seizure can have on your business cash flow—which you’ve set aside for payroll, office rent, supply purchases, and payroll taxes—and on relationships with your customers.
If your company faces a levy or lien, it’s important to deal with your tax problems as quickly as possible to minimize the impact on your business.