Understanding a tax lien
  • May 26, 2021
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The IRS can take serious actions to collect unpaid taxes. Unpaid taxes, if left unresolved, can invite some serious financial consequences. The IRS can impose a tax lien, levy, or garnish your wages to recover the debt you owe the government if you fail to respond after receiving the notice. In this blog post we will discuss the IRS tax levies and liens and how to handle them properly. Read on.

Identifying Tax Debt Issue

Before the IRS takes any action against a taxpayer for unpaid taxes, it must serve them with a notice of action. Some of the common notices include:

  • Notice of Federal Tax Lien
  • Notice of Intent to Levy
  • Final Notice- Notice of Intent to Levy and Notice of Your Right to a Hearing.

Once you receive a notice, it is recommended to seek tax lien assistance from an experienced tax attorney without any delay. You must also list all the reasons for any disagreement with the collection action from the IRS. You need to file the request timely for due process. Failing to do that can result in loss of your right to appeal to a federal court.

Related Blog Post: The IRS has Imposed a Tax Lien on my Property: What Should I do?

Consequences of Failing to Settle Your Tax Debt

If you fail to work out a plan to pay your back taxes, the IRS will take strict action to enforce collection. The exact action that is taken depends on the amount of taxes owed plus interest. The IRS can file a tax lien or levy, which may result in seizure of some or all of your property and assets, or opt for wage garnishment. One of the biggest problems with a tax lien or tax levy is that they make it difficult to purchase, sell, or refinance a property. Additionally, unpaid tax debts make it very difficult to get approval on loan applications, credit cards, and any other line of credit as they reflect on your credit report.

Challenging A Tax Lien

The most straightforward way to get a tax lien removed is to pay the tax debt but this only works when you accept that the debt is valid. If you don’t agree to the debt, you can apply for a Discharge of Lien, Subordination of Lien, or Withdrawal of Lien. Your tax attorney will help you file and appeal against the tax lien to boost your chances of getting a favorable outcome.

Related Blog Post: A Brief Guide on How to Stop an IRS Levy

Removing an IRS Tax Levy

If you are being levied by the IRS, you can still get the levy removed by being in compliance. For that, you need to file all past and current tax returns and request a payment plan such as a regular or partial payment plan. You can also enter into Currently Not Collectible status. Your attorney can help you establish your eligibility for the best path to attain the removal of an IRS tax levy.

Wrap Up

Owing back taxes can be damaging to your personal as well as business finances. It is recommended that you immediately seek tax lien assistance from an experienced tax attorney as soon as you receive a notice. If you or someone you know is looking for a tax lien attorney in or around Texas, contact the Law Offices of Nick Nemeth. We have a team of experienced attorneys with a proven track record of successfully helping clients with their tax problems. Simply call (972) 426-2553 or fill out our contact form, and we will take care of the rest.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah 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.
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.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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