Know About IRS Tax Settlement Firms
  • August 21, 2020
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The IRS uses a tax lien to claim against the taxpayer’s property or assets if they fail to pay their taxes on time for a certain period. IRS tax liens can adversely impact the taxpayer’s credit history and create hindrances while securing any other credit in the future. Before establishing a tax lien, the government will file a public document: Notice of Federal Tax Lien, to warn taxpayers about the government’s legal right to their property. After receiving the notice, creditors should either pay their back debts immediately or seek tax lien assistance for opting one of the legal procedures like the discharge of property, withdrawal, or subordination which can borrow some relief and time to pay back the debts. Continuing on the subject, in this post, we present a brief guide to understand how a tax lien expires and how you can seek IRS tax lien assistance. Read on.

Expiration of Tax Lien Without Payment of Tax Debt

If creditors do not pay their tax debt even after receiving a notice from the Internal Revenue Service, the government may charge a federal tax lien which, at the least, can last for 10 years and also can expand for more time under Section 6502 of the Internal Revenue Code (IRC) if

  • There is an execution of an installment agreement for payment of the debt
  • The creditors file an Offer in Compromise
  • The IRS refiles a tax lien within the refiling period

Under Section 6503 of the IRC, the period of the collection can be suspended in events including:

  • The taxpayer’s property is being seized by the court.
  • The taxpayer is living outside of the United States for more than six months.
  • The taxpayer’s property has suffered wrongful seizure or placement of the lien.
  • The taxpayer files for bankruptcy.

Related Blog: Wondering How to Get Assistance Regarding a Tax Lien? Read This Now

Release, Withdrawal, Discharge, and Subordination of Tax Liens

Taxpayers can also get relief from IRS tax liens through many ways, including:

  • Release – Taxpayers can pay their debts in a lump sum under an installment agreement or negotiate an Offer in Compromise. This way, they can satisfy their federal tax liability and get released from the IRS tax lien before its date of expiration.
  • Withdrawal – Taxpayers can also convince the government for IRS lien withdrawal if the lien has been improperly filed. Also, the lien can be withdrawn if taxpayers have entered into a Direct Debit Installment Agreement.
  • Discharge – In some cases, taxpayers can also discharge their assets from an IRS tax lien and sell them without any interference from the IRS. There are several Internal Revenue Code (IRC) provisions that determine if the taxpayers are eligible for discharge.
  • Subordination – Taxpayers can have their tax liens subordinated to the interests of other creditors if the IRS allows other creditors of the taxpayer to “cut in line.” For instance, if a creditor refinances a property on behalf of the taxpayer, the IRS may agree to give priority to the lender’s secured interest to the tax lien which was attached to the property before the refinance.

It is important to note that all these options will be available to the creditors depending upon many factors like the taxpayer’s current financial circumstances and the amount of their tax debt. Discussing with a tax lien attorney is the best way to understand the various options available to you and chart a way forward.

Related Blog: Steps By the IRS to Mitigate Impact of Covid 19 on Taxpayers

Final Word

Tax liens, when not immediately addressed, may pose a serious threat to your financial wellbeing. Dealing with the IRS and getting the tax lien withdrawn can be made possible if you find the right solution that works for your particular case. Are you concerned that the IRS may be preparing to impose a lien on your property? Do you need an IRS tax lien assistance? We, at The Law Offices of Nick Nemeth in Dallas, are here to help. To speak with one of our highly experienced tax lien attorneys, contact the Law Offices of Nick Nemeth by calling (972) 426-2553 for a free consultation.

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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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