Tax liens are one of the primary tools used by the Internal Revenue Service (IRS) to collect a delinquent tax debt. A lien is a type of legal claim that the government attaches to property owned by the taxpayer. When a lien is in place, it prevents the taxpayer from selling that property and also puts other creditors on notice of the existence of the lien.
Tax liens can be disruptive to your financial life. Thankfully, there are ways that a seasoned tax lawyer could help resolve them. If you are facing the possibility of IRS liens on your property, or one already exists, you could benefit from a discussion with a Vienna lien resolution lawyer.
Tax liens are a type of legal claim that the federal government can attach to property owned by taxpayers. While liens are commonly used with real property, such as a house, the government could apply them to personal property or other significant assets as well. A lien resolution attorney in Vienna could assess which properties might be at risk of having a lien placed on them.
A lien is not the first option that the IRS will consider. Before a lien is created, the government will make collection attempts through the mail. Once the IRS opts for a lien, it will file a document known as a Notice of Federal Tax Lien. Once a lien is in place, the taxpayer is barred from selling or transferring the property in question. To complicate matters, they could find it challenging to secure a loan while the lien is in place.
The simplest way to remove a tax lien is to pay the full balance owed to the IRS immediately. But payment in full is not an option for some taxpayers. For that reason, the IRS offers a number of alternatives that could remove the lien or otherwise ease the financial strain a taxpayer is under. A Vienna lien resolution lawyer could offer guidance on which option is the best choice for a taxpayer and help them navigate the lien.
There are times when the federal government will hold tax liens on a number of properties owned by the taxpayer. In some cases, the IRS could discharge the lien as it applies to a specific piece of property while retaining the lien on everything else. This is commonly used to allow the taxpayer to sell a piece of property that could provide funds to address the tax debt.
A best-case scenario for an IRS tax lien is withdrawal. Withdrawal occurs when the IRS agrees to completely withdraw the lien based on a promise to pay the debt in a set amount of time. This is usually an option only for small debts.
There is another alternative to IRS tax liens, known as subordination. Subordination does not result in the release of an IRS tax lien but it could benefit a taxpayer by allowing other creditors to take priority over the federal government. By allowing other creditors to enforce lower-priority liens, a person could still sell their property. These sales could help a taxpayer resolve their debts, including what they owe to the IRS.
Lien resolutions can happen in a number of ways, from subordination to complete withdrawal. You do not have to try to resolve an IRS lien on your own. Let a Vienna lien resolution lawyer help you address these challenges and come into full compliance with the IRS.
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.