Contact Impact Tax Resolution immediately to keep the Federal Notice of Tax Lien off your public records!
If you are in business there may be other solutions than paying of your federal tax lien. See our corporate restructure page.
A lien can be defined as a charge or encumbrance that a person has on the property of another as security for a debt or obligation. A federal or state tax lien may arise when a taxpayer is liable to pay any federal or state tax after a demand has been made for payment.
Before a Federal Lien can be filed the IRS must first:
Make an assessment
Send you notice of Demand
The IRS is required is to send you a notice of your appeal rights for collection due process procedure 5 days after they have filed a Notice of Federal Tax Lien.
An audit done by the Treasure Inspector General for Tax Administration has found that the IRS does not always follow the law.
If it can be determined that IRS procedure was not followed ITR may be able to get the IRS to issue new notices.
It is very important to move quickly if you have received a Notice of Federal Tax Lien. There is a possibility to have the lien withdrawn if the result will put the IRS in a better position to settle your tax liability.
- If you pay your liability the Lien will be released.
- If the statue of limitation has expired on the amount assessed the lien must be released.
- At the discretion of the IRS, if a bond is furnished in the amount to secure your liability, the IRS may release the lien.
Lien subordination is when the IRS voluntarily takes a position below other creditors in their rights or claims to the subject property.
The only time the IRS will allow subordination is when it is determined to be in their best interest.
For instance, if a homeowner cannot refinance their property because of the lien, but the purpose of the refinance is to secure proceeds to pay the IRS. In that case the IRS is most likely to subordinate the lien with the expectation the proceeds are going to pay a substantial amount of the tax liability.
Should you have any questions concerning this policy please feel free to contact us.