All You Need to Know About Federal Tax Liens

understanding federal tax liens

The Internal Revenue Service (IRS) imposes federal liens on taxpayers who owe taxes to the government. A federal tax lien is a document that is filed as a matter of public record with a county government, usually at the location where the taxpayer lives or does business. It informs the general public that the taxpayer owes the government money. Liens can be filed against the taxpayer’s personal property. They keep track of the entire amount owed to the IRS. If a taxpayer sells the property that is subject to a lien, the IRS obtains a portion of the proceeds before the taxpayer receives anything. Here are the most important things you should know about federal tax liens and professional tax lien assistance.

Getting rid of a lien

If the lien was filed in error, when the outstanding debt is paid in full, or when the unpaid balance is otherwise settled, such as through a successful offer in compromise, the IRS will remove the lien. It will also remove the lien if it becomes unenforceable, which can happen if the statute of limitations has run out. There are two avenues that an IRS tax debt resolution attorney will explore when you seek tax lien assistance:

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IRS lien withdrawal

If a federal lien is found to have been filed in error, such as when the wrong taxpayer is targeted for a debt, the IRS will withdraw it. It would be as if the lien had never been filed in the first place. If you suspect that this case applies to you and that a lien was mistakenly filed against you, you should contact the IRS straight away. In such circumstances, you should seek IRS tax lien help. An IRS representative will look over your account history to make sure you don’t owe the tax, then prepare the paperwork to remove it. The IRS has established a Fresh Start Program in which taxpayers who meet specific conditions may be eligible for lien withdrawal. You should consult a Dallas IRS lawyer who can assist you with applying for IRS lien withdrawal.

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IRS Lien Release

The IRS may release a federal tax lien if it helps expedite tax collection or if it is in the taxpayer’s and government’s best interests. When a federal lien is released, the property in question is no longer encumbered by the lien. The county’s records will be amended to reflect the release of the lien. Liens are generally released 30 days after the outstanding tax debt is paid in full or when a guaranteed or streamlined installment plan is established. Most federal tax liens are, however, automatically released by the IRS following complete payment of the tax owed. When looking to get IRS tax help for Dallas contact an attorney that offers a simplified tax lien release process. An experienced Dallas IRS tax lien attorney can help you find a resolution to return to the good graces of the IRS. If the unpaid taxes are less than $25,000, the taxpayer may be eligible for lien discharge under the Fresh Start Program. You could try shifting part or all of your tax debt to a credit card or a home equity line of credit or make payments to bring your balance under the $25,000 barrier.

Final words

Taxpayers should seek the guidance of a federally recognized IRS tax attorney when dealing with tax liens and collections. If you are looking for tax lien assistance from a trusted Dallas IRS lawyer attorney, the Law Offices of Nick Nemeth can help. We provide professional tax lien assistance to taxpayers in Dallas that leverages years of experience. Reach out to us for a no-obligation consultation. Simply call (972) 426-2553 or fill out our contact form.