lien on property

[Tammara]

What is the name of your state (only U.S. law)? Ohio

When the IRS places a lien on the property of someone who is self employed, how will the IRS go about collection of unpaid tax?

Thank you for your time.

 

[FlyingRon]

If you're talking about real estate, they get first in line whenever there is a sale or foreclosure.

 

[irsos]

What is the name of your state (only U.S. law)? Ohio

When the IRS places a lien on the property of someone who is self employed, how will the IRS go about collection of unpaid tax?

Thank you for your time.

As has been said, they will be first in line for proceeds of a sale. In the meantime, they can levy your bank accounts, customers, retirement accounts, etc. You need to make arrangements with them to pay the tax. If you have not already done so, you need to make sure you are paying estimated taxes so the problem does not get worse.

 

[Tammara]

Yes, the lien is on real estate that belongs to a relative of mine. He is a contractor who does windows, decks, siding, etc. I doubt that he is paying estimated tax.

 

[irsos]

Yes, the lien is on real estate that belongs to a relative of mine. He is a contractor who does windows, decks, siding, etc. I doubt that he is paying estimated tax.

If he has a bank account and/or receives 1099's for his work, he is heading for some real misery if he does not get it taken care of.