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Federal Tax Liens

The Treasury Department, Washington DC

Background

An IRS tax lien is the federal government’s legal claim against your property when you fail to pay your tax debt. A federal tax lien protects the IRS’s interest in your assets; real estate, personal property, financial assets, etc.

A federal tax lien is placed on your assets after the IRS:

  1.  Assesses your tax debt;
  2.  Sends you a tax bill called “Notice and Demand for Payment”; and,
  3.  You fail to timely pay your tax debt

 

Federal tax affects your:

Assets. An IRS tax lien attaches to your assets such as real property, personal properly, securities, vehicles, and to future assets acquired during the lien;

Credit. Once the IRS files a “Notice of Federal Tax Lien”, it may negatively affect your ability to take a loan; and,

Business. A federal tax lien attaches to all assets your business owns.

Bankruptcy.  If you file for bankruptcy, your tax debt, federal tax lien, and “Notice of Federal Tax Lien” may continue after the bankruptcy.

 

Avoiding a Tax Lien

You can avoid a federal tax lien by filing all your non-filed tax reruns and paying all your tax debt.  If you cannot file or pay on time, don’t ignore the IRS letters. If you can’t pay your full tax debts, consider “installment plan”, or “offer-in-compromise” to settle your tax debt over time.

 

Lien vs. Levy

A tax lien is not a tax levy. An IRS lien secures the federal government’s interest in your property when you fail to pay your tax debt. A tax levy takes your property to pay the tax debt. If you ignore to pay or make arrangements to settle your tax debt, the IRS is authorized to levy, seize and sell all your assets to satisfy the IRS tax debt.

 

Getting rid of an IRS Tax Lien

Of course, paying your tax debt in full is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after your tax debt is paid in full.

Options: When conditions are in the best interest of both the IRS and you, other options for reducing the impact of a lien exist;

Discharge of property removes the federal tax lien from your property. Refer to Internal Revenue Code provisions in the IRS Publication 783 for more information and eligibility for a discharge;

Subordination does not remove the IRS lien, but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage; and,

Withdrawal removes the public notice and assures that the IRS is not competing with other creditors for your property.

 

We Can Help With You Liens And Levies

  • Zaher Fallahi, Tax Attorney, CPA, assists taxpayers in getting rid of federal tax liens and levies, and strives to stop the IRS Tax Debt and FTB Tax Debt collection effort.
  •  

    Zaher Fallahi, tax attorney, CPA, has been rated 10 out of 10 by Avvo  Rated 10 of 10 .

    Zaher Fallahi, tax resolution attorney, has been named a top tax attorney: TOP Tax Attorney

    About 1.8% of the U.S. lawyers are also CPAs, and we are proudly one of them.

     

    Let us help you. Contact information:

    (310) 719-1040 (Los Angeles)

    (714) 546-4272 (Orange County)

    e-mail [email protected]