| What is an IRS Federal Tax Lien? | | | | Keep in mind that an IRS lien release will typically occur |
| The IRS federal tax lien is a claim registered against | | | | ten years after the tax is assessed, provided the IRS |
| property for the non-payment of back tax liabilities. | | | | does not file it again. However, contacting IRS tax |
| Unlike a bank or wage levy, the tax lien does not | | | | specialists to review your tax lien problem is certainly |
| deprive the taxpayer of the property or the right to | | | | advisable over “waiting out the 10 year period” |
| transfer this property. If you owe back taxes then you | | | | for the IRS federal tax lien to automatically or |
| may ultimately become the victim of one of the most | | | | self-release. There are standardized procedures in |
| powerful tools in their collection arsenal: IRS tax liens. | | | | place for IRS lien releases, discharges and |
| And know that the larger your back tax debt liability, | | | | subordination. In qualifying situations, the IRS will |
| the sooner the IRS may issue this federal tax lien | | | | normally remove the tax lien within 30 days and the |
| against your property. The formal notification is called a | | | | taxpayer may receive a copy of the Certificate of |
| Notice of Federal Tax Lien and this is a “public | | | | Release of Federal Tax Lien. |
| notice” that you owe the IRS money. Now your | | | | What can be done if you cannot afford to pay the tax |
| IRS tax problem will no longer be a “private or | | | | debt in full? |
| confidential matter”. Anyone considering doing | | | | Obviously, if you had the funds to remit on your back |
| business with you like banks, various financial | | | | tax liability, you would not find yourself in this |
| institutions, customers and vendors will know that you | | | | predicament where you are staring in the face of an |
| owe the IRS back taxes. That is the reason so many | | | | IRS federal tax lien. As discussed above, the IRS will |
| delinquent taxpayers hope to stop IRS tax liens before | | | | issue an IRS lien release if you satisfy the tax debt |
| this matter goes on the public record at the County | | | | due by paying it or having it “adjusted”. This |
| Clerk’s office in their particular county. Once the | | | | essentially means that the IRS is open to a tax |
| IRS federal tax lien is registered, then the IRS has now | | | | settlement, also called a “compromise offer”, for |
| become a secured creditor right behind other prior | | | | an amount less than your full back tax liability. While this |
| secured creditors, but ahead of all your unsecured | | | | may sound quite easy, do not plan on this being a |
| creditors. And to make matters even worse, this IRS | | | | simple situation. If you are hoping to reduce your |
| tax lien will go on your credit report. It will negatively | | | | delinquent tax debt, there are several programs you |
| impact your credit score, obviously making future | | | | may qualify for. IRS tax specialists have the in depth |
| financing for home, vehicle or other types of loans | | | | knowledge and experience to review your financial |
| very difficult. Very often, this federal tax lien can make | | | | situation as it pertains to the Offer in Compromise |
| you completely ineligible to borrow, even at ridiculously | | | | program (both personal and business) as well as IRS |
| high rates of interest, depending upon the guidelines | | | | Penalty and Interest Abatement. Both these programs |
| imposed by the lender. | | | | offering IRS tax debt relief do reduce the overall tax |
| What are your options to secure an IRS lien release? | | | | liability. However, making or submitting an “offer” |
| The Internal Revenue Service will release a Notice of | | | | to the IRS will not affect the IRS tax lien which |
| Federal Tax Lien within 30 days after you satisfy the | | | | remains effective until your offer is formally accepted |
| tax due (including any interest charges or other | | | | and the amount is full paid to the IRS. At that point, a |
| additions) by paying the tax debt or by having it | | | | taxpayer may request the IRS lien release. Again, IRS |
| adjusted, or within 30 days after the IRS accepts a | | | | tax specialists handle IRS tax liens a daily basis. They |
| bond that you submit, guaranteeing payment of the | | | | are abreast of all the complexities to insure your best |
| debt. It is prudent to seek out the advice of IRS tax | | | | chance at success for an accepted reduced offer |
| specialists for IRS tax liens. The negative impact can | | | | and the ultimate release of your IRS federal tax lien. |
| be far reaching, as noted above in the first section. | | | | |