Basic information regarding tax liens – what is a federal tax lien?
A federal tax lien is the government’s legal claim against your property when you fail or neglect to pay a federal tax debt. The lien protects the government’s interest and can attach to all your property, including real estate, personal property, and financial assets.
A federal tax lien exists:
After the IRS assesses your tax liability;
Sends you a bill that explains how much you owe (Notice and Demand for Payment); and
You neglect or refuse to fully pay the debt on time.
The IRS files a public document, called the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.
IRS files 975,000 Federal Tax Liens each year. That amount is expected to sharply rise soon as millions of taxpayers are continuing to be in debt with the IRS.
The filing of a Federal Tax Lien financially cripples taxpayers and ruins their financial lives for up to ten years. It is best to get your Federal Tax Lien Released as soon as possible.
A FEDERAL TAX LIEN IS NOT THE SAME THING AS A FEDERAL TAX LEVY
A lien secures the government’s interest in your property when you don’t pay your tax debt.
A levytakes the property to pay the tax debt. If you don’t pay or arrange to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.
WHAT IS A FEDERAL TAX LIEN?
An IRS Federal Tax Lien is a legal claim asserted against a taxpayer’s assets to collect unpaid taxes. The IRS Letter 3172, Notice of Federal Tax Lien and Right to a Hearing, is sent to the taxpayer to establish public notice to all creditors that the IRS has a claim against all your current property and any property you acquire or are entitled to after the tax lien is filed.
The IRS Federal Lien will remain a matter of public record until paid in full.
The sooner an IRS Federal Lien is removed the faster you can get back on your financial feet.
The IRS has collection policies that require a tax professional to negotiate a solution that is a budget-wise and equitable arrangement that you and your family can live with, allowing you a Fresh Start.
HOW A FEDERAL TAX LIEN CAN AFFECT YOU
A lien attaches to all your assets (such as property, securities, and vehicles) and to during the duration of the lien.
Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
The lien attaches to all business property and to all rights to business property, including accounts receivable.
If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
Call us today and speak directly to a Former IRS agents, Tax Attorneys, and CPAs and get tax relief from your Federal Tax Lien.
IRS FEDERAL TAX LIEN RELEASE – FOR IMMEDIATE TAX RELIEF CALL US NOW!
Options: When conditions are in the best interest of both the government and the taxpayer, other options exist for reducing the impact of a lien.
Paying your tax debt
In full is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt.
Discharge of property
Allows property to be sold free of the lien. The seller or buyer can apply for certificate of discharge from Federal Tax Lien.
Does not remove the lien but allows other creditors to move ahead of the IRS, which may make it easier to get a loan, mortgage, or refinance your mortgage. We apply for a certificate of subordination of federal tax lien.
Removes the public notice and assures that the IRS is not competing with other creditors for your property. We will file an application for the withdrawal of filed form notice of federal tax lien (pdf).
Offer in Compromise
By a successful Offer in Compromise (OIC) and fulfilling the terms in full, making all payments
By having the ten year statue expire;
If the Federal Tax Lien was filed mistakenly, file an administrative claim with the Internal Revenue Service to have it removed.