Letter 3172 serves the purpose of notifying the taxpayer that the IRS is moving on with seizing his or her property. Properties include tangible assets like your house, vehicle(s) and/or business, and intangible assets like your bank account(s) and/or investments.
This letter is typically sent to taxpayers who have a considerably large amount of tax debt and have made no effort settling it.
What to Expect in this Notice
The notice, if no further action is made by the taxpayer, alerts the taxpayer that they have issued a tax lien on their account. To learn more about tax liens and how they can affect you, click here.
As well, it gives the IRS the right to seize your assets and sell them as payment towards your tax debt. If you are a homeowner and the IRS has placed a tax lien on the property, the IRS may have the right to claim ownership of it.
On the notice, the following will be listed:
- The time period of when the tax lien was implemented
- The total owed amount to the agency
How to Remove a Tax Lien
Before the lien is imposed, you have a 30-day window to contact the IRS and have it removed. If you feel the tax lien issued to you was a mistake, a form explaining how to appeal will be included in the audit letter.
Even after the lien is issued, you can still contact the IRS in an attempt to clear your account. If you need further assistance on how to approach settling an IRS audit, contact a tax professional immediately.