Understanding the Nitty-Gritty of a Federal Tax Lien

IRS Tax Lien Assistance with The Law Offices of Nick Nemeth

A tax Lien is the last thing a taxpayer wants to receive from the IRS. When a taxpayer neglects or fails to pay their tax liabilities in time, the IRS files a public document – the Notice of Federal Tax Lien.  This document alerts the defaulter that the IRS has the legal right to claim their property or assets such as real estate, bank accounts, and vehicles. This is the first major step the IRS takes against a tax defaulter. A tax lien may limit a taxpayer’s ability to get credit in future. If you also have received a notice of federal tax lien from the IRS, here are a few things that you need to know to find your way out.

Getting Rid of an IRS Tax Lien

Full Payment

Paying your tax debts in full is the obvious way to get rid of an IRS tax lien. Once you have paid your outstanding taxes, the IRS will release your lien within the next 30 days. You can pay your taxes directly to the IRS, online, to get instant payment confirmation. If paying the outstanding amount in full is unfeasible, it is advisable to seek professional IRS tax lien assistance by consulting an IRS tax lawyer.

Property Discharge

The IRS may remove or discharge a specific property from federal tax lien under certain situations. These include, understanding the cases for requesting a discharge, the process to file a request, and scenarios in which the IRS may grant the request. Taxpayers may get a discharge under several Internal Revenue Code provisions that explain their eligibility. Once the property is discharged, the taxpayer needs to sell it off to settle their tax debts. Consult an IRS tax attorney for IRS tax lien assistance to get discharge from federal tax lien.

Withdrawal

A lien withdrawal request removes the Notice of Federal Tax Lien from the name of a taxpayer and confirms that the IRS is not contending with other creditors for your property. You may request the IRS to withdraw the notice of Federal tax lien under certain circumstances. Once the lien is withdrawn, it does not reflect on a taxpayer’s credit history.

Subordination

Subordination is completely different from the property discharge. In case of subordination of lien, its priority gets lowered as another lien against the same property gains priority. A certificate of subordination of federal tax lien helps you or your business refinance a mortgage, provided you are able to prove to the IRS you cannot pay the taxes in full. Consult a professional tax attorney for IRS tax lien assistance to get a better understanding of how, why, and when you may request a federal tax lien subordination.

Must Read: Tax Lien Versus Tax Levy – Examining the Differences

The Bottom Line

Though you can contact the IRS directly for a tax lien removal, it is always advisable to seek professional tax lien assistance by consulting a reputable lawyer. If you have received a notice of a federal tax lien from the IRS and want to file a request for lien removal, consult the professionals at the Law Offices of Nick Nemeth. To schedule a no-obligation free consultation, fill out our contact form or call (972) 627-4580. You can also request a free tax analysis by our professional team member.

Understanding the Nitty-Gritty of a Federal Tax Lien
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