One of the tools that the Internal Revenue Service (IRS) relies on to collect unpaid tax debts is known as a tax lien. IRS tax liens are a form of legal claim placed on a delinquent taxpayer’s property. This lien attaches to the taxpayer’s property and notifies other creditors of the debt. With a lien on your property, you could be barred from selling or transferring it and could find yourself unable to borrow money.
With the help of a focused tax lawyer, you could resolve a lien with the IRS. This could occur through settling the lien or paying a bond to have it released. By working with a Rockville IRS lien resolution lawyer, you could address this problematic tax issue in short order.
An IRS tax lien serves as protection on the government’s claim to your property. While these liens often attach to real property, they could also be used on personal property or even financial assets.
A tax lien will not appear out of the blue. Typically, the IRS will first either assess that taxpayer as a liability or send them a bill for what is owed. A lien will only come into play once the government takes this step and the taxpayer fails to pay in full on time.
The IRS initiates the process by filing a document known as a Notice of Federal Tax Lien. This public document notifies all of a person’s creditors that the government has a claim on their assets. Anyone receiving a Notice of Federal Tax lien could benefit from immediately discussing their options with a local IRS lien resolution attorney.
The most straightforward way to remove a tax lien is to pay the balance in full. When a taxpayer does this, the federal government will remove the lien within 30 days. However, this option is not realistic for all taxpayers. This option may also not be ideal for individuals that dispute the amount of their tax bill. With the help of an attorney, there could be other methods of IRS lien resolution.
In some limited cases, the IRS could agree to remove their lien from a specific item of property. The lien would stay in effect for all other property outside of what is discharged. A discharge would allow the taxpayer to sell, or otherwise dispose of, that property once the discharge is complete, on the condition that the IRS receives any and all of the sales proceeds..
While subordination does not release a lien, it does allow other creditors besides the federal government to move ahead of them in priority. This could allow the other creditors to foreclose or otherwise exert their liens and could be beneficial, in some cases, for taxpayers that are seeking a loan. A Rockville tax lien lawyer could advise as to whether subordination is preferable.
For smaller liens, the IRS may agree to withdraw the lien completely. This is only done in exchange for a promise to pay the amount owed within a short period of time following the withdrawal.
When it comes to IRS liens, there is no time to delay. An IRS lien can impact your credit, lock down your assets, or harm your business. The sooner you work to resolve a lien, the sooner you could obtain relief. Let a Rockville IRS lien resolution lawyer assist you in negotiating with the federal government. Schedule a confidential consultation to learn more about your options.