When you are informed that the IRS is placing a lien on your property due to unpaid tax debt, you should quickly retain an experienced lien resolution attorney. You may have many questions about lien resolution in Washington DC. Pontius Tax Law assesses your situation and works with you to resolve the underlying debt.
A common mistake that a lot of people make is not resolving their underlying tax debt for a long period of time. That taxpayer would be subject to enforcement collections by the IRS through levies. Some taxpayers leave this problem unresolved and wait until they need to sell their underlying property to pay the IRS, but they cannot sell any property with a tax lien placed on it.
The best time to seek legal counsel for lien resolution would be as soon as the underlying tax debt becomes too large to resolve on its own. Ideally, this occurs early in the IRS collection process since the lien takes effect within 10 days of the initial IRS contact. The IRS would send out notice for demands and payments – and if the debt is over $10,000, they may file a tax lien against that person.
Another good time to contact legal counsel for lien resolution is when the IRS issues a CP504 notice (notice of intent to levy). At that point, it has gone from a lien (which is a filing to put someone on notice of the debt) to a levy, which is the actual taking taxpayer’s assets to pay for tax debt.
When looking for an attorney, a taxpayer will want to find someone who has had regular experience dealing with the IRS on resolving tax liens, and someone who will be responsive to both the IRS and to the taxpayer while this issue is being worked out.
If someone has an IRS lien filed against them, they would benefit from speaking to an attorney about the best way to resolve their underlying tax debt. Once the underlying tax is resolved, that will allow them to potentially sell or borrow against their assets, the largest of which is typically the home.
A critical piece of advice that a tax lawyer gives to individuals is to resolve the tax debt before a lien is filed. The IRS will give taxpayers plenty of opportunities to deal with the issue before it gets to the point where a lien needs to be filed against them. Potential solutions for overdue tax may include an installment agreement, an offer in compromise, or Currently Not Collectible status.
Liens will affect a taxpayer’s ability to borrow against or sell their home, but, as of 2018, do not affect an individual’s credit score. However, if the IRS has filed liens against the taxpayer, the IRS may also soon begin seizing assets or garnishing wages with a tax levy.
You do not need to try and resolve your tax debt by yourself. We know how to answer the common questions about lien resolution in Washington DC and get you back in compliance with the IRS. Set up a consultation with Pontius Tax Law by calling us today.
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, Fairfax, 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.