Letter 3172: Notice of Federal Tax Lien and Your Right to a Hearing

The Letter 3172 is sent by the IRS to notify taxpayers that a federal tax lien has been filed against their property due to unpaid taxes. A tax lien gives the IRS a legal claim to the taxpayer’s property to secure the payment of the tax debt. The letter also provides information about the taxpayer’s right to request a Collection Due Process (CDP) hearing to appeal the lien.

Key details of Letter 3172:

• Tax Lien Filing: The letter informs the taxpayer that the IRS has filed a tax lien, which applies to the taxpayer’s property, including real estate, vehicles, and other assets. The lien is recorded publicly, which can impact the taxpayer’s ability to sell or refinance the property.
• Impact on Credit: A federal tax lien can negatively affect the taxpayer’s credit score and may make it difficult to obtain loans or sell property. The lien will remain in place until the tax debt is fully paid or resolved.
• Right to a Hearing: The letter provides instructions on how to request a CDP hearing within 30 days. This hearing allows taxpayers to dispute the lien or propose alternative solutions, such as payment plans or offers in compromise.
• Resolving the Lien: Taxpayers can resolve the lien by paying the full amount of the tax debt or negotiating a payment plan. Once the debt is resolved, the IRS will release the lien, and the taxpayer can request a withdrawal to remove the lien from public records.

The Letter 3172 is a serious notice that requires immediate attention, as it indicates that the IRS has taken legal action to secure their interest in the taxpayer’s property.