IRS Using too Many Tax Liens

By Robert Davis
Jan 5 2011

Independent advocates released a report this morning that shows the Internal Revenue Service is overusing tax liens against US taxpayers.

According to the report released by the advocates, the IRS filed 168,000 tax liens in 2009 but they filed over 1 million tax liens in 2010. This number, according to the advocates, is significant enough proof that the IRS has been strong-arming US citizens into paying their back taxes.

However, those that protest the moves by the IRS suggest that the governing body could be better served by reviewing each delinquent tax case on an individual basis rather than treating every person the same. This is highlighted by the fact that the US is still in the grip of a poor economic situation and has been dealing with job losses and a faltering housing market.

Under the current guidelines, taxpayers that fall into arrears with the IRS can have their property attached by the tax collecting agency. When there is a lien on property the IRS ensures that they are going to get their money first should the property be sold. Often times this results in the taxpayer finding a way to pay the back taxes.

Nonetheless, the advocates believe that the tax code is so complicated that most taxpayers are unaware of why they owe back taxes and have no idea that they have any kind of legal recourse in the matter.

The IRS also has the ability to attach fines and late fees to the back tax amount, which compounds on a monthly basis.