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Federal Tax Liens

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If you owe taxes and don’t pay, the IRS may issue a Federal Tax Lien in the county courthouse where you live or own property, to secure payment of your tax debt and protect the government’s interests. It’s the start of their forced collection of your property (a tax levy) to settle your tax debt. It attaches to all property you currently own, and all property and assets you acquire, until you pay.

The Best Defense for IRS Tax Liens: Pay Your Taxes

Obviously, the best way to handle a lien is to prevent it from being issued. You can:

  • Pay the debt, which may include setting up installment payments.
  • Negotiate a reduced settlement, and then pay or start an installment plan.
  • Get the lien put in a Currently Not Collectible status if you are unemployed or underemployed and can prove you can’t pay, or the lien impedes your financial recovery.
  • Under certain circumstances you may be able to enter into an agreement with IRS to have the notice of federal tax lien withdrawn, as if it had never happened.

Reducing or Releasing Tax Liens

If you already have a federal tax lien against you, there are remedies available to make your recovery easier:

  • Discharge of Property– You may decide to sell less important assets or downsize your home to pay off IRS debt. This removes a lien on those properties so you can do this.
  • Subordination of Lien– This allows other creditors to place their lien ahead of the IRS and as an example, make it easier for you to buy a house.
  • Lien Withdrawal– While rarely allowed, under certain conditions, the IRS may remove a lien, improving your ability to move, acquire or sell assets, but you are still liable for the debt.

Fixing Your Credit Rating

Tax Clean Up can help you get your tax lien released, subordinated or withdrawn, before it becomes a levy. When your lien is satisfied, we also do something most tax practitioners do not – we work with the IRS to get credit reporting agencies to remove records of the liens. This helps you get back on your feet quicker with your credit rating. (At this writing, there is one credit reporting agency that requires the individual do this, but we’ll coach you on the process.)

Call Tax Clean Up at 214-617-2020 for Tax Lien assistance today!