Tax Lien

IRS Tax Lien – State Tax Lien

Federal IRS Tax Lien A state or IRS tax lien is the first significant step that the state or IRS will take against a taxpayer to collect back taxes. In addition to a significant strike against your tax record (and your credit report), a tax lien is like an insurance policy to ensure the tax liability is not overlooked should other creditors attempt to collect from you, or you attempt to sell or buy a house, apply for credit, or file for bankruptcy.

A Tax Lien tells the world the IRS has first claim of your property

By filing a tax lien, the IRS or state tax agency gives public notice to your creditors (current or future) that the government has a first priority claim on your residential or commercial property, or any bank accounts you may have.

During the collection of past due taxes, the IRS may file a Notice of Federal Tax Lien to secure the government’s interest. Sometimes the IRS will even do this even if a taxpayer has agreed to a payment solution with the agency. A lien is required by law to establish the government’s priority as a creditor which determines the “pecking order” with other creditors in common situations, such as bankruptcy proceedings or some future sale of real estate. Once a lien is filed, it will likely appear on a taxpayer’s credit report and will undoubtedly significantly harm a taxpayer’s credit rating. For that reason alone, it is important that a taxpayer work to resolve a tax liability as quickly as possible, before a tax lien filing becomes necessary. The same scenario applies to state taxing authorities.

Our Tax Resolution Lawyers may be able to persuade the IRS or State to release, withdraw, or subordinate its lien in situations such as:

  • Complete payment of taxes owed
  • Acceptance of an IRS Installment Agreement
  • Acceptance of a taxpayer’s Offer In Compromise (OIC)
  • Acceptance of a bond as guarantee of payment
  • Tax agency that violated procedural requirements for filing of an IRS tax lien
  • Tax agency violated standards of due process
  • Notification of bankruptcy proceedings
  • Automatic release of tax lien after 10-years (certain requirements)

Help getting your lien released, discharged or subordinated

It is best to head off the filing of an IRS or state tax lien before it is filed. That said, the reality is tat most tax liens are addressed only when they threaten to prevent the refinancing or selling of a some real estate. Tax Resolution Lawyer Paul Staley can work to have your federal or state tax lien released, discharged or subordinated. The IRS and state tax agencies are usually willing to subordinate a lien when doing so won’t hurt its interests —if it will benefit the financial well-being of the taxpayer. Why? Because if there is a situation where the taxpayer’s net income will increase by getting a more favorable mortgage loan resulting in a smaller payment, resulting in more left-over income (to pay the IRS), or perhaps a new loan would create a more valuable real estate asset (considering an assumable loan) – making it more likely that you will be able to pay down your tax liability.

No matter how severe the collection efforts – Call a Professional

The IRS is the most aggressive and powerful debt collection agency in the world. If you owe back taxes, the IRS will do whatever it takes to collect. Collection actions include putting liens on your personal or business property, levying your property, emptying your bank accounts and even garnishing your wages. No matter how severe the collection efforts area give Tax Resolution Lawyer Paul Staley a call at 619-235-4095. Having a professional tax attorney intervene on your behalf can make all difference in turning your tax mess around.

Make that call — Get some help!

San Diego Tax Resolution Lawyer, Paul Staley, provides a no-obligation, confidential consultation and has appointments available for evenings and weekends. Moreover, we accept all major credit cards and can make other payment arrangements so that we can help you get your tax problems straightened out without adding additional layers of financial burden on you and your family. To schedule a confidential free consultation call (619) 235-9645.