Tax Liens

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property, and financial assets. A federal tax lien exists after the IRS assesses your tax and sends you a bill that explains how much you owe.

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The IRS does offer programs to withdraw, discharge, or subordinate the tax lien. A taxpayer whose assessed tax debt is below $25,000, can successfully request a withdrawal of the lien after they have established an installment agreement to satisfy the debt within 60 months and made three consecutive payments. Additionally, the IRS may withdrawal the lien where it can be demonstrated that its withdrawal will facilitate the collection of the debt.

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A taxpayer can also apply to have the lien discharged from a particular asset. As long as the IRS receives payment equal to their interest in the piece of real property secured by the lien. Also, a taxpayer may also apply to have the lien subordinated so as to allow a creditor to take priority over the tax lien. This happens most frequently where a taxpayer is attempting to refinance a mortgage or take an equity loan on real property.

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If you have been issued a lien by the IRS or state tax agencies, contact the tax attorneys at RLU&W Law. We work with Americans in all 50 States.