What happens when an IRS tax warrant, tax lien or tax judgment is issued against your business? How does it affect your business funding chances?
The IRS has the authority to issue a lien against your assets, including those that you have used as collateral for loans. This includes potential liens and levies against all your assets, including inventory and accounts receivable – receivables you had hoped to factor for needed working capital. In addition, the IRS is known to seize assets without notification!
If you have unresolved back-tax issues with the IRS, it is very difficult to obtain the funding you need for working capital to grow your business. Working with an experienced funding source can resolve your tax issues and provide the necessary financing.
Many times the IRS does not even issue lien and will go straight to the “intent to levy stage” – where they will take possession of your assets if you do not make payment or appeal the intent-to-levy notice within 30 days.
Furthermore, the IRS often makes a “wrongful levy” – e.g., when a lender already has a prior secured interest or lien on the accounts receivable or other financial or physical assets. The IRS DOES NOT conduct a lien search prior to issuing a levy and thus does not know whether the assets on which it intends to levy are being used as collateral. Even if the levy is wrongful, and the IRS had no legal right to those assets, it is very difficult, time-consuming and costly for you to get the assets back from the government.
Since 1998, BusinessCash has been helping entrepreneurs in need of critical working capital with tax issues. Even with or without a lien in place!