A tax lien is the government's legal claim to your property or rights to property when you fail to pay your tax debt.
The IRS may file a Notice of Federal Tax Lien at your local courthouse on an unpaid balance of $10,000. The lien is then a matter of public record and may negatively impact your credit.
To avoid the lien you may:
- Pay the tax debt in full or below $10,000
- Request a qualifying installment agreement
- Dispute all or part of the balance due
If the IRS has already filed a Notice of Federal Tax Lien, you may qualify for one of the following relief options:
- Lien release removes the lien from your property when the tax liability is satisfied or become unenforceable (such as when the period the IRS has to collect the debt has expired or an acceptable bond is obtained). The lien is not removed from public record or your credit report.
- Lien withdrawal removes the lien from public record and your credit report.
- Lien subordination allows another creditor to move ahead of the IRS in priority to allow a refinance, home equity loan or a loan consolidation. This does not remove the lien.
- Lien discharge allows a specific piece of property to be sold free of the lien. The lien remains on all property or rights to property.
our 3-step process to handling IRS liens
We will analyze your financial situation and request account and wage and income transcripts from the IRS.
Next, we will determine which lien relief option is appropriate for your situation
Lastly, we will prepare and submit your request for lien relief to the IRS.