One of the tools that the Internal Revenue Service (IRS) relies on to collect unpaid tax debts is a tax lien which is a 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 it difficult to borrow money.
With the help of a focused tax lawyer, you could resolve an IRS lien for tax debts of $50,000 or more. 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. For example, a family with a tax lien will be unable to sell their home. This lien must be discharged, subordinated, or withdrawn so that the family can sell their house or pull home equity to pay down their tax debt.
A tax lien will not appear out of the blue. The IRS first will send the taxpayer a notice and demand letter which is simply a tax bill and a request for payment. If the matter is not resolved within 10 days, the taxpayer is at risk for a tax lien.
The IRS initiates the process by filing a document known as a Notice of Federal Tax Lien. This public document notifies the taxpayer’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 Rockville IRS lien resolution attorney. It is possible to resolve the issue before the lien is even implemented.
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 release the lien within 30 days. However, this option is not realistic for all taxpayers and might not be ideal for individuals who 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 that property once the discharge is complete, on the condition that the IRS receives all 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 allows a taxpayer to refinance their mortgage and to use their home equity to pay the IRS. A Rockville tax lien lawyer could advise as to whether subordination is preferable based on the situation.
Once a tax liability is resolved and the lien is released, the IRS may agree to withdraw the lien from the public record, as if it was filed in error. The IRS may also withdraw a lien if the taxpayer owes no more than $25,000 and the taxpayer enters an installment agreement with certain terms and conditions.
Since many situations regarding a lien also tend to have a tax levy involved, a lawyer could address both issues at the same time.
When it comes to IRS liens, you have multiple avenues for resolution. The sooner you work to resolve a lien, the sooner you obtain relief. Let a Rockville IRS lien resolution lawyer assist you in sorting out your situation with the IRS and determining when to challenge an issue. Schedule a confidential consultation to learn more about your options.
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.