Federal Tax Lien
  • December 8, 2016
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A federal tax lien is one of the last things you would want to receive as a taxpayer. Under a tax lien, the IRS claims the rights to the defaulter’s assets, such as real estate, bank accounts, and vehicles. The lien may even limit the taxpayer’s ability to get credit in the future. Taxpayers, who file for bankruptcy, may still have to continue paying the lien. If you too have received an IRS tax lien, here are a few things that you need to know to find your way out.

The Options at Hand

1. Pay Your Debt in Full

The quickest way to get rid of a tax lien is paying the outstanding debt in full. Once you have settled the outstanding tax debt, the IRS will release your lien within a period of 30 days. You can pay online directly through your bank account using your phone or mobile device and get an instant payment confirmation, too.

2. Discharge

“Discharge” helps remove lien from a specific property. Taxpayers may get a discharge of property from a federal tax lien under one of the Internal Revenue Code (IRC) provisions. Once the property is discharged, taxpayers need to sell it off and settle their tax debts.

3. Subordination

Subordination of a lien is different from the release of a lien. In the case of subordination of a lien, though the lien stays as is, its priority gets lowered as another lien against the same property gains priority over the lien in question.  This means the other creditor gets the right to be paid before the tax lien gets paid.

4. Withdrawal

Under certain circumstances, you may request the IRS to withdraw the Notice of Federal Tax Lien issued in your name. The benefit of a lien withdrawal as compared to a lien discharge is that once withdrawn, the lien does not reflect on the taxpayer’s credit history, while it does reflect in the case of discharge.

Must Read: Tax Lien vs. Tax Levy: Examining the Differences

Last Few Words

Though there is an option to contact the IRS directly and request a lien removal, it is always advisable to seek legal professional help when dealing with issues as intricate as tax liens. If you have received a notice of federal tax lien or have any questions related to tax liens, please call The Law Office of Nick Nemeth and schedule a free no-obligation consultation with Nick personally.  You can reach us at (972) 426-2553 or fill out our contact form and we will get back to you shortly.

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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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