How Can the IRS Taxpayer Advocate Help?

A recent client came to me with a particularly delicate problem. He and his wife owed the IRS approximately $110,000 in back taxes. Under normal circumstances, that debt alone would have been stressful enough—but this client’s situation was unique. He was a New York State Judge, and any public filing of a Notice of Federal Tax Lien (NFTL) could have jeopardized not only his reputation but also his judicial career. Because he frequently presided over business law cases, the public record of a tax lien might have caused the Chief Judge to question his credibility and, potentially, ask for his resignation.

By law, once a taxpayer owes the IRS, a federal tax lien automatically arises against all the taxpayer’s property to secure the government’s interest. However, this lien only becomes public when the IRS files a Notice of Federal Tax Lien—a document recorded with local authorities to inform creditors of the government’s claim. The filing of that notice can severely impact a person’s credit and professional standing.

Despite our arguments, the IRS initially insisted on filing the NFTL to protect its interests, as it often does in cases involving large balances owed. We presented comprehensive evidence showing that the lien would serve no practical purpose. The taxpayer had minimal equity in his assets—we even obtained professional appraisals confirming this. Moreover, we demonstrated that the IRS would ultimately collect more money if our client was allowed to continue his judicial duties without the public embarrassment and career risk that a lien filing would cause.

Still, the IRS was reluctant to waive the lien filing based solely on these arguments.

That’s when we turned to the IRS Taxpayer Advocate Service (TAS) for help.

The Taxpayer Advocate Service is an independent organization within the IRS that assists taxpayers who are experiencing financial hardship or facing problems that the regular IRS channels are unable—or unwilling—to resolve. The TAS’s mission is to ensure that taxpayers are treated fairly and that their rights are protected under the Taxpayer Bill of Rights.

We reached out to our local Taxpayer Advocate office and explained the full situation, providing all the supporting documentation. This included a letter from the Chief Judge confirming that any public notice of a tax lien would directly affect our client’s ability to continue working as a judge, essentially eliminating his income. The Advocate’s office took immediate interest in the case and determined that the lien filing would indeed cause significant harm to both the taxpayer and, indirectly, the IRS’s long-term ability to collect the debt.

After the Advocate’s intervention and direct communication with the IRS Collections division, the IRS ultimately agreed that filing the NFTL was not in anyone’s best interest. Instead, we worked out an affordable installment agreement that allowed the couple to repay their $80,000 debt over five years—without the stigma and professional fallout that a lien would have caused.

This case is a great reminder that the Taxpayer Advocate Service can be a powerful ally. When taxpayers encounter roadblocks or unreasonable treatment, the TAS can step in to balance the scales and ensure that the IRS’s actions remain fair, reasonable, and grounded in the law. Whether dealing with liens, levies, delays, or miscommunication, the Advocate’s office has the authority and independence to help resolve even the most complex and sensitive tax problems.