Q. My company has a federal tax lien. Am I eligible to factor my accounts receivable?
A. Yes, with provisions. Factoring companies are primarily concerned about their ability to collect payments from your customers on your factored accounts. If your company has a federal tax lien, the IRS's claim against your company's accounts receivable is superior to your factoring company's. Factoring companies therefore must either set aside a reserve from your funding to protect themselves against the possibility that the IRS may levy your customers or obtain an agreement with the IRS that will allow you to factor your accounts receivable with the IRS's consent and agreement to take no collection action against your accounts receivable that may jeopardize the factoring company's ability to collect on your factored accounts.
Q. My company has negotiated an installment agreement with the IRS on unpaid back payroll taxes. Will Double Diamond Investment factor my accounts receivable?
A. Yes, provided no lien has been filed by the IRS. Factoring companies are able to monitor your installment payments and confirm you remain current on your current payroll taxes. Monitoring the status on your installment payments is necessary because the factoring company must protect its security interest in your accounts receivable. Should your company fall behind in its payments the IRS, they may place a lien against your company's assets. Enforcing this lien by levying your customers. This collection action makes it impossible for factoring companies to continue to factor your accounts receivable until the taxes are paid or the lien is released.
Q. The IRS is about to levy my bank accounts again. Can Double Diamond Investment offer immediate help?
A. Yes. We can usually stop a levy or garnishment fast, often the same day. Furthermore, we immediately start communicating directly, on your behalf, with the taxing agency. This allows you peace of mind, knowing that an experienced professional is handling your case.