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Federal Tax Lien Marketing



Let me start by saying that I am not a fan of tax lien marketing. I know that's controversial in the world of tax representation but it's true. I don't believe in playing on people's fears to cause them to make an impulse purchase.


I prefer to present myself as the expert and win their trust. A lot of tax professionals ignore the tax lien list. Others use it to threaten prospects that they will go to jail or have their bank account cleared out if they don't call them immediately. How do I know? Because when I'm hired by a taxpayer that has a lien they send me any mail they receive about it.


And if you don't know me well enough yet, let me tell you that I call these companies using scare tactics on my clients. They're not usually too happy to hear from me.


Even though I'm not a fan, I cannot ignore the fact that federal tax lien marketing works when done correctly and ethically. With millions of CP504s going out in the past 3-6 months, the tax liens are sure to follow. This means the IRS will be going back to regularly updating the list.


Today I'm going to share two different ways you can use the tax lien list to market to prospects.


What is federal tax lien marketing?


When the IRS issues a tax lien they file a notice of federal tax lien with the taxpayer's county clerk. The document is a part of the public record. It displays the taxpayer's name, address, and the amount of tax debt the lien attached to the lien.


It does not tell you if the taxpayer has made a payment arrangement with the IRS. These payment arrangements are what is triggering the IRS to file some of the recently filed tax liens. During the pandemic, taxpayers were able to somewhat hide under the radar. Well, no more. Those with debt over a certain threshold will have tax liens filed.


If they have a payment arrangement set up, such as an installment agreement, the IRS will not take any enforcement action. Such as issuing a tax levy, that would clear out their bank account. That's why I shake my head at tax professionals threatening taxpayers with that. Even if a taxpayer does have a payment arrangement set up they may still be a good prospect to market to and here is why.


Your everyday taxpayer is not going to be a tax expert. That means that they will let the IRS dictate how much they pay each month, even if they cannot truly afford it. They do not know that they have options such as currently not collectible status, penalty abatement, etc.


That's where you as the expert come in to offer them a consultation and help them explore their options.


How do you find the federal tax liens?

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