understanding federal tax liens
  • April 18, 2022
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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:

Related Blog Post: How to Spot and Avoid Tax Scams

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.

Related Blog Post: All You Need to Know about the New IRS ‘Tax Pro Account’ Feature

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.

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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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