Tax liens show up on your credit report and can keep you from selling your assets! Options are available. Our income tax attorneys can help!
Are you unable to sell your home or property because of an IRS tax lien? Has your bank turned you down for a loan because of a tax lien? Has your line of credit been terminated due to a tax lien?
You do have options!
Tax liens are like “mortgages” to the Internal Revenue Service and state. They are filed to protect the government’s interest – IN YOUR PROPERTY! They tie your property down because you are forced to deal with the lien and the tax obligation before you can sell.
The federal tax lien attaches to the taxpayer’s property as of the date of the assessment, as well as all property and property rights subsequently acquired by the taxpayer. Three requirement must be met before a valid tax lien occurs: (a) A valid tax assessment must be made; (b) The taxpayer must be given notice and demand for payment within 60 days of the assessment; (c) The taxpayer must fail to pay the amount assessed. Notice that recording the lien is not one of the requirements and many times taxpayers don’t know that a tax lien has been filed against them.
Once the lien is filed, it continues for the entire period that the IRS can collect the tax. Generally, the lien is not released until the tax is paid. There are several ways to deal with tax liens.
- Obtaining a lien release commitment in exchange for full payment of the tax obligation.
- Requesting a certificate of subordination to another creditor.
- Requesting a partial lien release.
- Requesting withdrawal due to mistake, etc.
- Paying down the liability to an agreeable amount and entering into an installment agreement.
Each of the lien options require written requests and communication with the IRS. They are often made along with other resolution proposals, like Installment Agreement requests. Keep in mind when you are attempting to sell property, it takes time before the IRS will address and rule on a lien release.
If you have questions about a tax lien filing or you are seeking relief from a tax lien, we can help! Call us confidentially or fill out our confidential contact form to schedule your FREE initial consultation.