The Internal Revenue Service (IRS) has multiple tools it can use to collect money it believes a taxpayer owes. One of the tools it frequently employs is a tax lien. The IRS could place a lien on your home, real estate, bank accounts, and other assets. While this lien is in effect, it will prevent you from accessing funds, selling your property, or getting a loan.
In many cases, a Bethesda lien resolution lawyer could get a lien released and secure a satisfactory settlement to the underlying tax issue if it is valued at $50,000 or more. Ignoring an IRS notice to impose a lien could lead to more expense and inconvenience, so contact a trustworthy tax attorney as soon as you receive an IRS notice of collection.
Typically, the IRS makes several efforts to collect a debt before it imposes a lien. Sometimes taxpayers do not receive the communications because the IRS does not have their current address, or they might receive the notices but ignore them. No one should ignore or dismiss any official communication from the IRS.
A taxpayer might dispute their debt but not know how to make their case. In other situations, taxpayers become overwhelmed if they lack the money to pay their tax debt immediately, so they do not take timely steps to resolve the matter.
A Bethesda attorney can often resolve the outstanding issue and avoid a lien, so it is beneficial if a taxpayer involves a legal professional before that occurs. However, options to resolve the matter are still available if the taxpayer receives Letter 3172, Notice of Federal Tax Lien.
If the taxpayer contacts a tax law firm soon after receiving Letter 3172, a Bethesda lawyer could correspond with the IRS to resolve the underlying tax dispute and remove the lien. If a taxpayer disputes the amount of the underlying tax debt, it might be possible to provide documentation that confirms the actual value.
Taxpayers can request a collection hearing on the lien but must respond to the notice within 30 days to schedule a Collection Due Process hearing. They could request an “equivalent hearing” if they did not request a Collection Due Process hearing in time. A Bethesda attorney could make the request for release, discharge, or subordination of the lien, or contest the amount owed.
When the tax debt is less than $25,000, the IRS may be able to remove the lien if the taxpayer agrees to pay the tax through an installment agreement. Interest on the debt continues to accrue during the repayment period but this method minimizes penalties. It also releases the taxpayer’s property from the lien so they can access the account, sell the property, or withdraw equity from it.
Sometimes the IRS agrees to discharge a lien from specific property on the condition that the taxpayer sells it immediately and pays the proceeds to the IRS. Similarly, the IRS might agree to subordinate a lien. For example, if the IRS puts a lien on a home and subordinates the lien, the homeowner could refinance their mortgage and use the equity to pay their tax debt.
Multiple options often exist to help taxpayers resolve their liens. A Bethesda lawyer could make sure they consider every option, including an Offer in Compromise or filing for Currently Not Collectible status.
If you have received a notice from the IRS about implementing a lien on your property, contact legal counsel immediately. A Bethesda lien resolution lawyer could evaluate your situation and develop a strategy that frees up your assets and addresses the underlying tax issue.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Vienna, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.