Understanding a tax lien
  • December 16, 2020
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The IRS files almost one million tax liens every year. A tax lien is a document filed at the local county recorder’s office to help secure debt taxpayers owe to the IRS. When individuals fail to pay their taxes, the IRS can impose a tax lien on their assets and property which gives it the authority to seize and sell, making it difficult for the taxpayer to sell or refinance it. That is why it is important to settle the IRS problem immediately by seeking tax lien assistance from an experienced attorney. In this blog post, we discuss three things you can do if the IRS imposes a tax lien on your property. Read on!

1. Have the Lien Subordinated

Taxpayers who are struggling with unpaid taxes and have tax liens on their property can complete an application for a Certificate of Subordination of Federal Tax Lien. The application can make the government’s interest in the taxpayer’s assets and property come after other creditors, such as the financial institution that holds the mortgage to said property. After successful completion of a Certificate of the Subordination of Federal Tax Lien Application, taxpayers can refinance the mortgage against their property to reduce their monthly mortgage payments. The IRS will agree to subordinate a tax lien only if it gets some percentage of the money owed upon the closing of the refinance.

Related Blog: A Brief Guide on How to Get Assistance Regarding a Tax Lien

2. Request the IRS to Discharge the Lien

Taxpayers can also request the IRS to discharge a tax lien so that they can sell their property. Although the discharge does not eliminate the lien, it frees the specific property and places the lien on another property belonging to the taxpayer. This way, taxpayers can sell the property freeing themselves from the lien and pay back their tax debts to the IRS. Taxpayers can also seek tax lien assistance from an experienced tax attorney who can communicate with the IRS on their behalf and persuade it to show leniency.

Related Blog: Worried about IRS Problems? The IRS Fresh Start Program May Help

3. Apply for an Offer in Compromise

Taxpayers who cannot afford to pay their taxes may sometimes qualify for an “Offer in Compromise” (OIC). OIC refers to an arrangement allowing taxpayers to settle unpaid taxes with the federal government for less than the amount taxpayers owe. Generally, taxpayers may need assistance from an IRS lawyer who can convince the government that they lack the capacity to pay back taxes. If the IRS accepts the settlement offer, it will eliminate a certain amount of the tax debt and all liens on the taxpayer’s property.

Wrap Up

Apart from the above-mentioned avenues, taxpayers can also deal with tax liens by being patient and waiting for the statute of limitation period for collecting taxes to run its course. Sometimes the IRS may remove a lien after the completion of the 10-year statute of limitation period if taxpayers comply with rules and do not sell or refinance their house. If you think that you need immediate tax lien assistance, connect with highly skilled tax attorneys at the Law Offices of Nick Nemeth, PLLC. To speak with one of our attorneys, 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.
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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
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Eddie WaltEddie Walt
19:44 12 Jul 22
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