Understanding the Nitty-Gritty of a Federal Tax Lien

October 5, 2018
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A tax Lien is the last thing a taxpayer wants to receive from the IRS. When a taxpayer neglects or fails to pay their tax liabilities in time, the IRS files a public document – the Notice of Federal Tax Lien. This document alerts the defaulter that the IRS has the legal right to claim their property or assets such as real estate, bank accounts, and vehicles. This is the first major step the IRS takes against a tax defaulter. A tax lien may limit a taxpayer’s ability to get credit in future. If you also have received a notice of federal tax lien from the IRS, here are a few things that you need to know to find your way out.

Getting Rid of an IRS Tax Lien

Full Payment

Paying your tax debts in full is the obvious way to get rid of an IRS tax lien. Once you have paid your outstanding taxes, the IRS will release your lien within the next 30 days. You can pay your taxes directly to the IRS, online, to get instant payment confirmation. If paying the outstanding amount in full is unfeasible, it is advisable to seek professional IRS tax lien assistance by consulting an IRS tax lawyer.

Property Discharge

The IRS may remove or discharge a specific property from federal tax lien under certain situations. These include, understanding the cases for requesting a discharge, the process to file a request, and scenarios in which the IRS may grant the request. Taxpayers may get a discharge under several Internal Revenue Code provisions that explain their eligibility. Once the property is discharged, the taxpayer needs to sell it off to settle their tax debts. Consult an IRS tax attorney for IRS tax lien assistance to get discharge from federal tax lien.

Withdrawal

A lien withdrawal request removes the Notice of Federal Tax Lien from the name of a taxpayer and confirms that the IRS is not contending with other creditors for your property. You may request the IRS to withdraw the notice of Federal tax lien under certain circumstances. Once the lien is withdrawn, it does not reflect on a taxpayer’s credit history.

Subordination

Subordination is completely different from the property discharge. In case of subordination of lien, its priority gets lowered as another lien against the same property gains priority. A certificate of subordination of federal tax lien helps you or your business refinance a mortgage, provided you are able to prove to the IRS you cannot pay the taxes in full. Consult a professional tax attorney for IRS tax lien assistance to get a better understanding of how, why, and when you may request a federal tax lien subordination.

Must Read: Tax Lien Versus Tax Levy – Examining the Differences

The Bottom Line

Though you can contact the IRS directly for a tax lien removal, it is always advisable to seek professional tax lien assistance by consulting a reputable lawyer. If you have received a notice of a federal tax lien from the IRS and want to file a request for lien removal, consult the professionals at the Law Offices of Nick Nemeth. To schedule a no-obligation free consultation, fill out our contact form or call (972) 426-2553. You can also request a free tax analysis by our professional team member.

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Brent Vahle

19:13 02 May 24

I called to see if they could help reduce some penalties and fees. The person I spoke with told me it might be counterproductive for them to take my case since their feels would likely equal the amount of penalty/interest abatement. I decided to pass on moving forward but was so happy to hear a legal team, or any business for that matter, who has that much integrity. I feel most others would likely try to take my money anyway. I hope I never have to go through this again, but if I do, I will definitely use the Law Offices of Nick Nemeth!

Jason Winkle

18:44 02 May 24

Jaime Flores was very friendly, professional, and knowledgeable. She gave me some very valuable information which helped guide me with a plan of action. The free consultation is very much appreciated.

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12:14 02 May 24

Great attorney who was able to provide quick and useful advice. Although my situation did not warrant their services, they still took the time to discuss solutions I could explore. I highly recommend visiting this office!

Tony Pantoja

12:57 09 Apr 24

Very professional and very knowledgeable, Jamie Flores was very straight forward and professional, a firm that doesn’t just take your money, Thanks

Carla Atwal

10:52 02 Apr 24

Nick was wonderful in guiding me with direction on some tax questions I had. He was concise, and to the point, and was happy to provide general info to me at no charge. I truly appreciate him and would highly recommend him.

Miguel Alvarado

15:56 25 Mar 24

By far the best attorneys I have ever worked with. They’re are very helpful and supportive from day one. They went above and beyond to make sure all my documents were submitted on time and gave updates as soon as they received them. I cannot name a single flaw in their work. Their team of assistants are very professional and seem to all be on the same page. I’ve made multiple phone calls and sent a ton of emails to their staff and they were able to help me all through the course of the case. I cannot express my gratitude enough for how excellent they handled my case.

Lucy Foy

06:55 19 Jan 24

My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.

Bradley Runyon

20:17 13 Jan 24

I received a tax bill in the mail from the IRS last year in 2023. The fees and penalties I owed were something I myself could not afford. I reached out to Nick Nemeth's firm and received the best experience you could imagine. The team was professional, educational, and fast. If you have a tax issue with the IRS using another firm other than Nick Nemeth's would be an error in judgment. I would recommend their services above others.

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19:55 11 Jan 24

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R G

20:53 21 Dec 23

I had an incompetent tax preparer, who also ignored several notices from the IRS, which in the end resulted in a lien on my property. I did not know what to do and an attorney friend recommended that I contact the Nick Nemeth Law Offices. I met with Jamie Flores and Ivan Nalbantov in December 2021 for a free consultation, and right away was impressed by their thorough examination of my paperwork and extensive knowledge of IRS tax laws. I felt not pressured and appreciated their advice and in the end decided that I would pursue resolving the issue by myself. I paid the IRS Civil Penalty and, as recommended also submitted a letter to the IRS requesting a refund and explaining what happened. I am glad to report that my persistence finally paid off. My case took two years to resolve and I finally received a full abatement/refund check from the IRS in December 2023. I could not have done this without the straightforward recommendation of Jamie and Ivan; and I highly recommend the Nick Nemeth Law Offices to anyone needing help with the IRS.

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03:27 25 Jan 23

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Sarah Howard

03:44 14 Nov 22

I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.

M W

00:33 07 Aug 22

I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.

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23:49 03 Aug 22

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19:44 12 Jul 22

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Getting Rid of an IRS Tax Lien

Full Payment

Property Discharge

Withdrawal

Subordination

The Bottom Line

What Our Clients Have to Say

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