Help With Federal Tax Liens
If you neglect to pay your taxes, you owe a debt to the Internal Revenue Service (IRS). To recover this debt, the IRS has the power to file a lien against your property. A tax lien safeguards the government’s stake in your property, including your financial resources, personal property and even your home. When the IRS issues a lien against your property – like your house, for instance – you cannot refinance or sell that property until the lien is removed or resolved.
If you have an IRS tax lien filed against you or you’re concerned about potentially getting one, contact Morgan Sebastian Law, PC, for help today. Our attorney is an experienced state and federal tax lawyer with a strong background in helping clients rectify tax debt. If you need help getting a tax lien lifted, Morgan Sebastian Law, PC, can help resolve your issue with the most beneficial result possible. To schedule a free 30-minute consultation with a knowledgeable tax professional at Morgan Sebastian Law, PC, call 877-938-1350.
What Is A Tax Lien?
The IRS considers a lien as “the government’s legal claim against your property when you neglect or fail to pay a tax debt.” Tax liens are public notices declaring that the IRS has a formal claim against the individual or entity identified in the lien. It encompasses a great range of properties, including your:
- Bank account funds
- 401k plan
Since tax liens can affect almost all of your assets and wealth, you must handle them with the utmost urgency.
A tax lien notifies the public that a debt is owed to the IRS and must be paid first and foremost. If you have an IRS tax lien, you are labeled as a credit risk and will encounter tremendous difficulty should you try to sell a property or any assets to a third party. For that reason, you must act quickly to avert tax liens.
What Is A Tax Lien Attached To?
An IRS tax lien relates to all property and property rights of the individual or entity held responsible for the tax debt. Even if you purchase a property after the tax lien is levied, referred to as “after-acquired property,” the tax lien remains attached. IRS tax liens attach to any property you own before and purchase after the lien is filed, which is why it’s so critical to resolve the lien as quickly as possible.
How Do I Get An IRS Tax Lien Lifted?
One of the fastest ways to get tax liens lifted is to pay the debt you owe. If you don’t have the means to pay the full amount, a feasible alternative is to submit a settlement offer to the IRS that’s lower than the total tax liability owed. An experienced tax debt attorney can help you assess your financial situation and provide a realistic settlement amount to offer the IRS.
Tax liens usually remain in effect until the person or business has paid the IRS the debt owed. However, it’s important to note that tax liens can only last for a specified time period. With most federal tax liens, the time limit, known as the statute of limitations, runs for ten years.
How Can I Avoid Or Remedy An IRS Tax Lien?
From a financial perspective, having a lien against you can be detrimental. You can avoid an IRS tax lien by merely filing your taxes accurately and on time while promptly paying any taxes owed to the state or federal government.
However, for many individuals, paying taxes is not feasible because they don’t have money. If you can’t avert a tax lien, you will want to remedy it quickly. You can resolve a tax lien or lessen its impact a few different ways, including:
- Paying the debt in full
- Discharge of property
When Can A Tax Lien Be Discharged?
A federal tax lien can be discharged by selling particular pieces of property. There are certain situations that the IRS deems appropriate for the discharge of property to remedy a tax lien that an experienced tax lawyer can help you identify.
When Can A Tax Lien Be Subordinated?
The IRS may accept a tax lien subordination if it’s in their most significant interest to do so. Generally, there are two reasons that the IRS will authorize you a certificate of subordination:
- The IRS may subordinate a tax lien if you consent to repay an amount equal to the interest they are subordinating. For example, the IRS may agree to a lien subordination to refinancing a home if it will help you pay back your tax debt.
- The IRS may subordinate their interest if it raises the sum they’ll obtain.
When Can A Tax Lien Be Withdrawn?
There are various ways to have your IRS tax lien withdrawn. The most straightforward is to pay your tax debt in full. In other instances, making specific contracts with the IRS can cause a lien withdrawal, including an Offer in Compromise or installment agreements. Additionally, a tax lien may be withdrawn if the statute of limitations concludes.
Choose An Experienced Tax Debt Attorney For Tax Lien Services
An experienced tax debt lawyer can help you to understand the potential consequences of a tax lien, how to alleviate the effects and repayment possibilities. Our attorney at Morgan Sebastian Law, PC, is skilled in working to obtain tax relief for numerous state and federal tax obligations and can analyze what options may best remedy your tax lien.