Remove IRS Tax Liens
If taxes aren’t paid in due time, the IRS may acquire a lien against your personal or, in some cases, your business property. In order to do this, the IRS only has to file a lien notice with the state or local governments.
If you are looking to get a lien withdrawn, this can be possible, especially if you believe that the lien has been filed in error, which happens more often than it should.
How does a tax lien affect a person?
Once filed, the tax lien becomes a matter of public record. This can have a devastating impact on your credit scores, reputations, and business relationships. Records of the lien will show up on your credit report, which means it will be impossible for you to get financing for property and other types of loans.
If there is a lien notice, this can prevent you from selling or transferring your property. The right to sell or transfer property is essentially frozen. This means you can’t sell, transfer, or borrow against your property.
Is there a difference between a levy and a lien?
A lien refers to a claim made on your property or your assets in order to secure payment for your tax debts. A lien is like a post-it note that says “I owe you,” but no assets will be taken from you immediately due to the lien notice being filed. On the other hand, a levy or garnishment is an actual seizure of assets.
Can’t pay your taxes? Here’s how to prevent a tax lien:
- Keep track of what is going on with your taxes, even if you haven’t paid.
- Respond to IRS notices immediately
- Contact the IRS and a tax professional if you think that there has been an error
- Ask for an extension if you have not paid by the due date
- Set up an installment agreement with the IRS
If you have received a notice of intent to file a lien, believe you are at risk of receiving one, or have property subject to a lien that you need removed or withdrawn, contact us right away.
Do you already have a lien?
If you already have a lien, there are options for working your way out of it, such as withdrawal, settlements and releases. You may also be able to appeal it if it was made in error.
Another route is subordination, where which the IRS may consider making an exception to the rule of not allowing you to borrow against your property if this means that the IRS will be paid out sooner rather than later.
If and when you do get a lien removed or settled, be sure to contact the credit bureau and get your reports updated.
Some reasons a tax lien may be legitimately disputed:
- The debt is paid off
- The lien was made in error
- There are other procedures that the IRS did not follow accurately
- You are in bankruptcy at the time of the lien
- The IRS did not give you the opportunity to dispute the amount
- The statute of limitations is up (10 years)
If you expect a lien to be filed or if a lien has been filed, contact us right away for a free consultation.
Act today to remove or lift an IRS lien.
Contact us as soon as possible if you receive a lien filing notice or if you need help removing or lifting an IRS lien.
As former IRS employees, we have a comprehensive process for helping people out of these situations. We can help prevent levies or other actions from being taken and help find an alternative solution to your unique case.
Call today for a confidential consultation. Our number is 800-521-0230.
More About IRS Liens
- Can the IRS Reach Assets in Land Trusts?Can the IRS reach an interest in real property held in a land trust? If so, what happens if the taxpayer sells the property? Can the IRS recoup the land from the new buyer or is the IRS limited to the proceeds received? The court addresses this in United States v. Harold, No. 2:18-cv-10223 (S.D. Mich. 2019) Facts & Procedural History The defendant owed back taxes to the IRS. The IRS brought suit to enforce its lien. The defendant owned interest in real estate via a land trust. While the litigation was pending, the defendant sold his interest in the… Continue reading Can the IRS Reach Assets in Land Trusts?
- Getting the IRS to Pay Your Attorney’s FeesThe IRS is required to pay a taxpayers attorney’s fees for defending unsupportable positions. This can even include attorney’s fees when the matter is settled administratively before court. But the IRS is not required to pay attorney’s fees if the IRS’s position is substantially justified. The Bontranger v. Commissioner, T.C. Memo. 2019-45, helps clarify how to view “substantially justified” when the law changes in the taxpayer’s favor. Facts & Procedural History The taxpayer was assessed criminal restitution. The IRS assessed interest on the restitution. It then filed a lien to try to collect the restitution and interest thereon. The taxpayer… Continue reading Getting the IRS to Pay Your Attorney’s Fees
- Designating Sales Proceeds Subject to IRS LienIf a taxpayer wants to sell property subject to an IRS lien and the IRS agrees to allow the sale, can the taxpayer designate what tax period the proceeds paid to the IRS from the sale are to be applied? The IRS attorneys address this in CCA 201916009. Facts in CCA 201916009 In CCA 201916009, the IRS Office of Chief Counsel is responding to an IRS employee’s question about how to apply payments for a lien discharge. Specifically, the IRS employee is asking whether the taxpayer can designate where the proceeds of the sale of property are to be applied… Continue reading Designating Sales Proceeds Subject to IRS Lien