IRS issues can compound when dealing with jointly owned property which often occurs with estates, marriage, and family ownership.

When the IRS initiates a federal tax lien against a delinquent taxpayer, the lien covers all rights to current and future properties the delinquent taxpayer has or may have, even if the ownership rights to property are only proportional. For example, in the case of a jointly held property, the IRS can attach lien rights to the delinquent taxpayer’s portion, potentially causing tremendous difficulty to the non-delinquent taxpayer. Even though the IRS’s lien does not encumber the innocent party’s share of the jointly held property; however, the lien becomes a shared burden since either party may be inhibited from borrowing against or selling the lien property. Most financial lenders are highly hesitant to issue credit while in a subordinate creditor position to the IRS.

What Happens if the IRS Forecloses on Jointly Held Property?

Even though the lien is filed against the only tax debtor party of the joint parties, the lien attaches to the debtor’s interest and thus the entire property, which can be sold pursuant to collection action such as a judicial sale under 26 U.S.Code § 7403. If an actual foreclosure of the lien property were to occur, the innocent party non-tax owing party might be entitled to their share of the proceeds.

How Does IRS Address the Death of a Joint Property Owner of the Tax Lien Property?

If one of the joint tenants, whom the tax lien has been filed against, passes away before the other joint tenants, the tax lien will cease to attach to the property held in joint tenancy. When the tax lien individual survives all other joint tenants, the tax lien will attach to the entire property. It is essential to check your applicable state law since there are exceptions to this rule. If one faces this situation getting professional tax advice is needed to ensure all options are available.

How Long Can the IRS Enforce a Tax Lien?

Generally, the IRS can only enforce a tax lien until the Collection Statutute Expiration Date, usually ten years from the tax assessment date. When a tax debt reaches the collection statutory time frame, it expires, as does the associated IRS lien. However, some circumstances may allow the IRS to extend or suspend the ten-year collection period. Under IRC § 6502, IRS tax liens can extend beyond ten years if:

• The Collection Statute of Limitations is extended in connection with the execution of an installment agreement for payment of the tax debt;
• The debtor taxpayer applies for an Offer in Compromise, tolling collection statute while the offer is being considered and could also contain an agreement to extend the statute of limitations for enforcement of a federal tax lien; or
• Within the required refiling period, the IRS refiles the lien.

Are There any Preventative Measures for Dealing with Joint Property Tax Lien Issues?

Transparency is Key. Often individuals unwittingly get married without knowing of the other’s IRS tax issues, only to find the hard way, especially if a jointly owned property is purchased. As a preventative measure, each party should disclose as much personal financial information as possible before marriage. Doing so will allow proper protection planning and bring the tax issue to the surface for quicker resolution.

Awareness of any intended beneficiary’s tax situation could prevent problems with estate planning. For example, suppose a beneficiary has tax debts with the IRS and is to share a property with others. In that case, the other beneficiaries may have to deal with the tax situation as previously discussed. Seeking professional help from a tax attorney may be ideal for planning and for tax resolution of the issue at hand.

What Are the Options When Dealing With Tax Liens on the Jointly Held Property?

There are several ways to alleviate tax liens. Outside of the complete payoff of tax debt, there may be alternative methods to remove the tax lien, depending upon the situation present.

For example, it may be possible to deal with the IRS to receive a lesser amount than owed on the lien while getting the lien removed. It can happen when one establishes that the tax debtor’s portion of the property is less than the total tax debt.

The IRS may allow for a lien release if it could be shown that the lien property has little or no value.

If the tax debtor has no income, assets, or income, the IRS might agree to a lessor payment amount if all its property lien will yield. A skilled tax attorney can assist with getting the discharge of the IRS tax lien from the property, maybe for under the total amount of tax liability. Addressing the tax lien will prevent foreclosure and protect the property of the non-tax-liable party.

The IRS may be willing to release the jointly owned property and pursue other assets of the tax debtor instead; if it could be established, there is enough value to cover the tax debt.

Finally, a situation may occur where neither the IRS nor the property owner cannot get funds from the property unless the lien is removed, therefore enabling a sale to occur. In this situation, the IRS may approve a fair market value escrow agreement, removing the tax lien for selling the property.

Negotiating with the IRS

For joint property lien issues, the most common type of discharge is through an escrow arrangement; however, each tax lien case is unique and often requires a strategy falling under a specific tax code for a successful outcome. The best approach is to have a tax attorney CPA to help make the correct determination, provide proper compliance guidance, and adequately advocate for the best available outcome.

For more information about IRS Tax Liens, please read the following blogs.

• “Information Regarding Appealing an IRS Federal Tax Lien“
• “Tax Lien Withdrawals“
• “How To Deal With IRS Tax Lien“

Get Help with your Joint Property Tax Lien Issues with Skilled, Trusted Representation at your side!

Do you need help getting out from under an IRS tax lien, whether for your tax debt or from someone else who shares property ownership with you? Are you concerned that the IRS may be preparing to impose a lien or levy your property? Tax Lien Relief Plans can be complicated to set up. Harmon Tax Resolution, LLC can assist by having an experienced, skilled tax attorney CPA to address your tax issue with the IRS, so you won’t have to. For a Free Consultation, Call Today @ 772-418-0949 or complete the online inquiry form so that you can sleep well tonight.

Make the Call Today so that you steer your path tomorrow!

When, Why, What & How

The IRS must issue you a “Notice of Federal Tax Lien (“NFTL”) and Your Right to a Collection Due Process (“CDP”) hearing under IRC 6320, or IRS Letter 3172, within five days of filing a lien for any tax and period. This notice is to inform you that a lien has been filed, and you have the right to request a “Collection Due Process” hearing within thirty days from the time frame specified in the notice.

There are two types of IRS appeal options available depending on the circumstances and timeframes surrounding the lien:

Collection Due Process (“CDP”) or Equivalent Hearing (“EH”). This must be requested within thirty days of the NFTL’s date listed. Use IRS form 12153 Collection for a Collection Due Process or Equivalent Hearing, or you could use a written request with the same information and send it to the address shown on your lien notice. The IRS must notify you within five days of filing an NFTL each time the IRS files one. This notice may be mailed, given to you, or left at your home or office. After those five days, you have thirty days to request a hearing with Appeals. The lien notice you receive will indicate the date this 30-day period expires. A CDP hearing will allow you to contest the IRS’s CDP determination in US Tax Court. It may be prudent to speak with a tax attorney-CPA for assistance.

What Happens If I Miss Thirty-Day Period to Request a CDP Hearing?

If you fail to request a CDP hearing by the 30-day time frame, you can request an EH using form 12153 (check the EH box on line 7) or by writing a letter. An EH must be requested on or before the end of a one-year time period plus five business days after the Notice of Federal Tax Lien filing date.

When Should You Consider Appealing an IRS Tax Lien?

The IRS may release a tax lien under several circumstances that may warrant appeal consideration if applicable to your situation:

• The IRS did not allow you to dispute the amount owed.
• The debt was paid in full before IRS filed the lien.
• There has been either a withdrawal, discharge, or subordination of the IRS tax lien (more on this later).
• Bankruptcy filing results in an automatic stay of tax collection activity.
• The Collection Statute Expiration Date had expired before IRS filed the tax lien.
• The IRS performed an improper tax lien filing procedure, such as failing to send you proper notice before filing the lien.
• The IRS incorrectly filed a lien in your name.
• You would like to apply for an available tax debt resolution, such as an Installment Agreement or an Offer In Compromise.
• The tax liability exclusively belongs to your spouse, and you plan to apply for Joint Spouse Liability Relief.

What Happens if I Win a Collection Due Process Appeal?

Upon a successful appeal, the IRS can take the following actions toward your lien:

• Keep the tax lien in place.
• Withdrawal of the tax lien entirely by removing the Notice of Federal Tax Lien from public records.
• Discharge the tax lien from specific property, allowing you to negotiate the property without having an IRS lien attached.
• Subordinate the tax lien, enabling assigned creditors’ liens on the property to have precedence over the IRS’s liens.

These options can be requested on Form 12153; you need to specify if you want a lien subordination, discharge, or withdrawal and explain why the IRS should honor the request.

In addition, on form 12153, you can also request other alternative actions you may be eligible for to remove the tax lien, such as setting up an installment agreement or applying for an Offer in Compromise. You have to meet specific requirements for these. You may also list other reasons why the lien should be released; for example, it was not you but your spouse responsible for the tax liability.

This can be incorporated into a letter if you choose not to use the form. It may be possible to circumvent the appeals process simply by dealing directly with the collection office that sent you the notice. Call the representative’s number listed on the notification to explain your position. If you are successful, you can cancel your request for a hearing. For proper due diligence purposes, you should submit a written request for an appeal hearing. For each NFTL filed, you are entitled to a separate hearing.

What Happens After You Request a CDP or Equivalent Hearing With the Office of Appeals?

The IRS Office of Appeals office will contact you to schedule a meeting once they receive your request. If granted, the initial appeals conference could take place over several mediums, face to face, over the phone, or by correspondence. There could be additional meetings and correspondence with the IRS Office of Appeals.

Upon completing their investigation, the IRS Office of Appeals will issue a determination letter indicating their decision to grant or deny your request.

If your request is denied, you can seek a judicial review from the US Tax Court. You must petition the US Tax Court within thirty days of the date the Office of Appeals issues the determination letter; otherwise, you lose the right to go to tax court.

How and When to Request a Collection Appeals Program

Collection Appeals Program (“CAP’). You may appeal the proposed filing of a Notice of Federal Tax Lien (NFTL) or the actual filing of an NFTL at the first and each subsequent filing of the NFTL. You may also appeal denied requests to withdraw an NFTL and denied discharges, subordinations, and non-attachments of a lien. A proponent for utilizing a CAP hearing is that it generally occurs much quicker than other appeal methods; however, the results are not challengable in a court. In addition, this is not a forum to challenge the amount of the taxes owed.

How Do I Appeal an IRS Tax Lien When No Revenue Officer is Present?

If you have not been assigned a Revenue Officer to your case, you can make a call to the number on the notice and explain your position on why you disagree with the tax lien. It’s helpful and vital to have a solution to present to the IRS representative. If you are unable to come to terms with the representative, you can request an appeal to that individual’s manager. The manager should get back to you on a call within twenty-four hours. If you cannot resolve this with the manager, the manager will submit your case to appeals. This is all done without a written request.

How Do I Appeal an IRS Tax Lien When Dealing With an IRS Revenue Officer?

If you have an IRS Revenue Officer (“RO”) assigned to your case and experience a disagreement with how to proceed, you may seek a conference with the IRS Collection Manager. If you disagree with the Collection Manager’s determination, you have three business days from the conference date to make a CAP appeal by submitting Form 9423, Collection Appeal Request. In addition, within two days of having the manager conference meeting, you will need to inform the RO of the request.

If the Collection Manager does not reach out to you within two days of your original request, you can make another attempt or submit Form 9423, Collection Appeal Request. If you choose to submit the form, you will need to indicate when you made the manager conference request and that they were unresponsive.

For more information regarding IRS Federal Tax Liens, please see the following recent blog articles:

• “Tax Lien Withdrawal“
• “Important Information about IRS Tax Liens“
• “How to Deal with IRS Tax Liens”

Who Can Represent Me in an Appeal for a Federal Tax Lien?

When appealing a tax lien through a CDP Hearing or Equivalent Hearing,

the following people can represent you:

• You, the taxpayer.
• If taxes are business related: Corporate Officers, General Partners, and some full-time employees.
• Licensed tax attorneys, CPAs, and IRS Enrolled Agents.

A seasoned, experienced multi-licensed tax professional addressing your tax lien will significantly increase your chances of success.

Get Help Appealing an IRS Federal Tax Lien with Trusted Representation at your Side!

Federal Tax Lien dealings can be very complex and require professional help. Harmon Tax Resolution, LLC can assist you throughout the process. At Harmon Tax Resolution, LLC, an experienced multi-licensed tax attorney-CPA-IRS EA will ensure that your tax lien situation gets the necessary representation. For a Free Consultation, Call Today @ 772-418-0949 or complete the online inquiry form so that you can sleep well tonight.

Make the Call Today so that You Steer your Path Tomorrow!

How Important is it to get a Tax Lien Withdrawal immediately?

A “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due. Getting this removed frees up opportunities you are currently prevented from partaking in. There are two primary options to consider.

The first option may allow withdrawal of your Notice of Federal Tax Lien after the lien release. General eligibility includes:

• Your tax liability has been satisfied, and your lien has been released.
• You are complying for the past three years in filing – all individual returns, business returns, and information returns.
• As applicable, you are current on your estimated tax payments and federal tax deposits.

The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:

• You are a qualifying taxpayer (i.e., individuals, businesses with income tax liability only, and out-of-business entities with any type of tax debt)
• You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to$25,000 before requesting withdrawal of the Notice of Federal Tax Lien)
• Your Direct Debit Installment Agreement must fully pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier.
• You are in full compliance with other filing and payment requirements.
• You have made three consecutive direct debit payments.
• You can’t have defaulted on your current or any previous, Direct Debit Installment agreement.

How a Lien Affects You

Assets — A lien attaches to all your assets (such as property, securities, and vehicles) and future assets acquired during the lien duration.

Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit. Although it does not appear on your credit report, it is public knowledge. A lender, which requires collateral for a loan, will be hesitant to proceed while knowing that their claims would be subsequent to that of the IRS.

Business — The lien attaches to all business property and all rights to business property, including accounts receivable.

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

For Additional Information about tax liens, please see the following blogs:

• “Tax Liens and Levies“
• “Important Information About IRS Tax Liens“
• “How To Best Avoid Tax Liens“
• “How To Deal with IRS Tax Lien“
• “Can the IRS Put a Tax Lien on My House“

It is imperative to have your tax lien removed as soon as possible. You can avoid a federal tax lien by simply filing and paying all your taxes fully and on time. If you can’t file or pay on time, don’t ignore the letters or correspondence you get from the IRS. If you can’t pay the total amount you owe, payment options are available to help you settle your tax debt over time.

Let us help you find a solution to your tax lien problem. Call Harmon Tax Resolution, LLC today at 772-418-0949 or complete our online form to request a free consultation with a knowledgeable multi-licensed tax attorney-CPA-Enrolled Agent.

Take the First Step to Get the Relief You Deserve!​

How to Discover If You Have an IRS Tax Lien and What to Do to Remove Them

What is the Difference Between a Tax Lien & a Tax Levy?

Although these two terms are significantly different in application, they are often misapplied by many. An IRS Tax lien is the IRS’s legal claim against your property that helps secure payment of an outstanding tax debt. An IRS Tax Lien does not mean someone will immediately seize the lien assets. A tax levy is an IRS seizure of your property to satisfy the IRS back tax amount owed. The IRS can implement a levy in various ways, from seizing your property for auction to initiating a wage garnishment or levying your bank accounts.

Typically, the IRS will file a lien before they decide to levy. When the IRS files a lien, it doesn’t automatically preclude a levy. Still, if the taxpayer does not take action to rectify the tax debt, then it is probable that the IRS will pursue a levy.

Usually, the IRS will file a lien before they decide to levy.

Discovering That You Have an IRS Tax Lien

The potential for an IRS tax lien occurs if you owe back taxes either from a return you filed or the IRS filed a substitute return on your behalf and you have received a ten-day demand for payment letter from the IRS. If you don’t pay the tax debt or make other arrangements to address it, the IRS will issue you a letter indicating that it will file a lien if you don’t pay the taxes you owe. The IRS must send a letter before issuing a tax lien. Generally, you will receive IRS letter 3172, a notice that the IRS has filed a lien. You should also receive a copy of the Notice of Federal Tax Lien – 668Y.

If you have an overdue tax balance of at least 10K and have yet to receive an IRS notification letter, you can contact the IRS to inquire about it. For the IRS, contact the Centralized Lien Department at 1-800-913-6050. Please have a copy of your last year’s tax return for verification purposes.

You can also search your state’s Secretary of State website for lien filings.

In addition, since Liens are filed in the applicable county of your latest address on record, you can also inquire with the Clerk of Court there. Typically, counties have a website search portal where you can look up by using your name.

What is a Tax Lien or Notice of Federal Tax Lien?

When you owe back taxes, the IRS can issue a legal claim to your assets, a tax lien. You usually must owe at least $10,000 in back taxes. The IRS will notify you of this lien by filing a notice of a federal tax lien. Remember that by the time you have received this notice, the IRS has already filed a lien. This is done to prevent the sale of assets before IRS can make its claim. IRS tax liens attach to all your current assets and any assets acquired in the future while the lien is in effect. A tax lien ensures that the IRS is empowered to take the money, or its portion, to pay the total tax debt.

A federal tax lien works the same way a home mortgage works, where the home mortgage loan lending bank has a lien on your home, which gives them the right to repossess your home if you don’t pay the loan. In addition, any loan balance owed to the mortgaging bank will have to be paid upon at the time of the home’s sale before others receive any money. When the IRS files a tax lien, they have the same right of sale proceeds to be applied to paying the tax balance.

What Assets Are Affected by IRS Tax Liens?

An IRS tax lien attaches to every current asset you own and any existing assets you have rights to. Tax Liens also attach to any future purchases and rights obtained while the lien is in effect. The IRS intentionally lists vague language within the Notice of Federal Tax to not limit the lien’s range over your assets and rights to assets. The list below is not inclusive; however, it provides an excellent example of the content of assets covered.

Properties (residences, vacation homes, rental homes – if business account: any business real estate). This also includes any future properties purchased while the lien is still active.

Any vehicle: cars, SUVs, trucks, vans, recreational vehicles & motorcycles

Investment income: stocks, bonds, investment funds, and other securities; real estate; retirement investment accounts; annuities; the investment portion of life insurance contracts; interests in trusts and estates; collectible items; commercial crops

Financial Instruments – any type: 401K, Crypto, Stocks, Bonds, Mutual Funds & Hedge Funds

Valuable Personal Effects – Jewelry, a collection of rare antiquities, coins, stamps, guns, and other

Accounts receivables – balances owed to you or your business

Will an IRS Tax Lien Prevent Me from Selling My Property?

A lien does not outright stop you from selling your property, but it means that the IRS is entitled to available proceeds to pay the tax debt. A tax lien is treated similarly to a mortgage upon the property’s sale. The mortgage is paid off before the seller obtains any remaining funds. The same applies to tax liens. Depending upon the how much the home is sold for relative to how much the tax liens are for will determine if there are any remaining proceeds. Suppose there is a present mortgage on the home that usually gets paid off first before any remaining balance is applied to paying down the tax debt. The debt balance may remain payable if the proceeds do not cover the tax debt owed.

Will an IRS Tax Lien Show Up on Public Records?

IRS tax liens are not private information protected from public view. The IRS initiates a tax lien by filing the lien with the local county clerk’s office, usually where the property is located, or with the Secretary of State. These filings are public records easily retrievable with a simple search.

A potential buyer of your property will do a title search, reflecting a lien on the property. Your potential creditors may see the tax lien if you apply for a loan. Employers could potentially perform a lien search under your name. This may be applicable if your job requires you to maintain a certain level of personal fiscal well-being.

How Long Do IRS Tax Liens Last?

Under the Collection Statute Expiration Date (CSED), the IRS typically only has ten years to collect a tax debt. The CSED starts when the IRS assesses the tax. Generally, the tax lien survives until the collection statute expires. Once the unpaid tax balance reaches a delinquency status, the IRS will mail you a Notice of Federal Tax Lien indicating tax lien is in effect. Since the IRS Tax delinquency status usually occurs relatively close to when the CSED starts, the lien period will coincide with the length of the CSED, typically ten years.

How to Remove an IRS Tax Lien

There are several ways to remove an IRS Tax Lien. You can pay the entire tax balance owed. IRS usually reflects this on public records within 30 days of receipt. Another way is if you could show that the lien is causing financial hardship, the IRS may release it. Finally, if you can establish that the IRS made a mistake by issuing the tax lien, you may have it removed. It’s recommended to seek advice from a tax attorney to determine the best lien removal strategy. Please refer to Attorney-CPA Will Harmon at Harmon Tax Resolution, LLC for more information.

How an IRS Tax Lien Could Affect You

Your creditors get notified when the IRS issues a tax lien. The lien will not impact the current debt for secured creditors since they have already established their claim rights to your assets under their security agreement with you. If there were to be an involuntary or voluntary asset sale, the secured creditors are entitled to their interest in the proceeds paid before the IRS is entitled to its lien amount. Any subsequent creditors will have their encumbrance claim subservient to the IRS’s claim. Having an IRS lien significantly hampers the ability to borrow. In addition, the IRS tax lien does take priority over unsecured liabilities, such as credit cards.

An IRS tax lien is considered unfavorably by your creditors. Even though the IRS no longer reports tax liens to the Credit Reporting Agencies, it is public information. A tax lien can have a similar effect as if your credit score has been negatively impacted because creditors may see you as a greater risk for default. This perceived risk may result in increased interest rates or a reduction in credit limits on credit cards or other borrowing mechanisms.

How to Appeal an IRS Tax Lien

You can appeal an IRS tax lien if you disagree with it. There are several appeal options available. The situation surrounding the IRS tax lien will determine which option to choose. If an IRS lien has been enacted, you should talk with a tax professional as soon as possible.

The IRS must have a separate Notice of Federal Tax Lien for each tax and period owed. The IRS is required to inform you each time they do. You have the right to request an appeal hearing within 30 days of the date listed on the notice. There are two main methods to appeal.

Collection Due Process: With this appeal, if you don’t like the outcome, you can appeal the decision to the United States Tax Court.

Collection Appeals Program (CAP): You can request a CAP hearing before or after a Notice of Federal Tax Lien is filed. However, the decision is binding to you and the IRS, and you cannot appeal to the Tax Court.

Tax Resolution Process

If you’re facing a tax lien, it’s essential to make sure you know all your options! Harmon Tax Resolution, LLC offers a free initial consultation to discuss your options. You will speak with multi-licensed Tax Attorney-CPA-IRS EA Will Harmon. He will address your situation from all available angles and provide you with critical information, allowing you the peace of mind and security of understanding your options. Call today so you can sleep well tonight.

Tax Levies & Liens

If you have outstanding tax debt and no apparent resolution, the IRS can execute tax liens or levies against you. Either of these actions goes beyond just owing the IRS money; it is the actual IRS enforcement action to collect on the tax debt. With liens and levies, you could see your monetary assets are taken, and your legal claim to current and future properties diminished significantly to the IRS as a creditor.

Harmon Tax Resolution, LLC is committed to helping our clients who face harsh circumstances such as liens or levies. Attorney-CPA-IRS EA, Will Harmon, can act on your behalf, but you must contact him to start the process as soon as possible.

Can I Get a Levy or Lien Removed?

When the IRS initiates a tax lien, creditors are notified that your property has an IRS claim against it. The IRS now has creditor rights. The IRS credit rights apply not only to current assets you may have, such as your home and vehicles but also to any new property you acquire after the lien has been filed. This can have a detrimental effect on your ability to take out a loan, refinance a property, and even buy or sell a home can be nearly impossible. Even though the IRS no longer reports liens to credit agencies, the liens are public records that are often looked at by potential creditors.

Once the IRS initiates a bank levy, you may be denied access to funds in your bank accounts. Your accounts are frozen; the IRS could seize these funds to pay down the tax debt, including associated interest and penalties. Without a doubt, this can severely impact you and your family’s well-being.

The tax attorney-CPA-EA, Will Harmon from Harmon Tax Resolution, LLC, understands how impactful this can be towards your life, and he wants to help — but the longer you wait to contact him, the longer and more complex a resolution may be. Call him today at 772-418-0949 to discuss how you can overcome the tax lien or levy situation so you can sleep better tonight.

When it comes to Tax Liens, it is better to employ preventative measures than to deal with curing them. Take our word on this.

When the Internal Revenue Service (“IRS”) issued a tax lien, they made a public declaration that you are delinquent on your taxes. Tax Liens are filed with the applicable county, typically where the property resides, and these are made public. A filed tax lien against your property gives the IRS creditor rights to this property. If this lien is not entirely paid off in time, it sets the stage for the IRS to initiate levy procedures, allowing the IRS to seize the property to pay the tax debt.

If you have an IRS tax debt, the IRS will initiate the Tax Lien process by sending you a Notice and Demand for Payment. It is essential to take heed of this notice because you are only provided ten days from the date of this notice to make your tax payments to head off any further actions from the IRS. If you do not respond, the IRS can now file a tax lien on any or all of your property, including your property rights. Liens can also be applied to the future acquired property. The purpose of the lien is to provide the IRS with a right in its interest toward the tax amounts outstanding. This helps ensure you stay in good standing with your tax obligations.

Little can be done to prevent the IRS from initiating a tax lien if you don’t timely pay your taxes in full. Because of the gravity of having a tax lien placed against you, it is recommended that you even consider borrowing, if need be, to pay off the tax debt. Once a lien is placed on the property, it remains until either the tax debt is paid in full or the statute of limitations on the tax debt runs out. The statute of limitations generally lasts ten years from the tax assessment date. Once a tax lien is filed is public knowledge and dramatically impedes your ability to access your equity in any lien assets and sell them.

Paying your taxes on time is the best way to avoid being subjected to a tax lien. If you are already in a tax lien situation, it would be ideal for retaining a tax resolution firm like Harmon Tax Resolution, LLC, to help you resolve your delinquent tax issue. A multi-licensed tax attorney-CPA-IRS EA will address your issue, allowing all angles of your situation to be correctly handled. He will identify the fastest and most suitable way to take care of your back taxes to prevent the IRS from pursuing additional aggressive actions.

For a free consultation, please call or schedule a meeting with our tax lien attorney near Port Saint Lucie, Fort Pierce, and Stuart. Start today and sleep better tonight.

How Does a Lien Originate

The IRS may bring a tax lien against you if you have a large tax debt. A lien is not the same as a levy. It does not automatically result in the loss of one’s property. A lien gives the IRS creditor rights to the property under the lien, which gives the IRS its place in the hierarchy of creditor rights to property. In addition, while a significant tax debt exists, the IRS may also attach liens on any acquired future properties or rights to properties. Although IRS liens are no longer reported to credit agencies, they are reported on public records in the county where the associated property is held. It impairs one’s ability to use the property to leverage for funds since a future creditor’s rights will be lesser than the IRS’s. Even though having an IRS tax lien is not ideal, there may be options to mitigate or eliminate the impacts.

Before a tax lien is issued, the IRS must assess a tax liability against you. The tax debt must be at least $5,000.00. A federal tax lien comes after the IRS assesses a tax against you and sends you a written warning demanding payment. If payment is not received within ten days, the IRS will be able to initiate a lien against your property. As of this point, the IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.

Ways to Deal with Liens

Paying your tax debt in full is the best way to eliminate a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt. If the government fails to lift the lien knowingly or unknowingly, you may file suit against the IRS.

At a minimum, IRS tax liens last for ten years. Under Section 6502 of the Internal Revenue Code, IRS tax liens can extend beyond ten years if:

• The statute of limitations is extended in connection with the execution of an installment agreement for payment of the tax debt;
• The taxpayer files an Offer in Compromise; An agreement to release a federal tax levy is accompanied by an agreement to extend the statute of limitations for enforcement of a federal tax lien; or
• The IRS refiles the lien within the required refiling period.

Additionally, under Section 6503 of the IRC, the period of the collection can be suspended due to events including:

• The issuance of a notice of deficiency.
• A court is seizing the taxpayer’s assets.
• The taxpayer resides outside the United States for six months or longer.
• The wrongful seizure of the taxpayer’s property.
• The wrongful placement of a lien on the taxpayer’s property; and,
• The taxpayer filing for bankruptcy.

In certain situations, the IRS may withdraw a Notice of Federal Tax Lien even when you still owe the tax debt. The Notice of Federal Tax Lien may be withdrawn if the IRS determines:

1. The Notice of Federal Tax Lien was not filed according to IRS procedures. Often a tax professional is needed to help establish this.
2. You entered into an installment agreement to satisfy the liability unless the installment agreement is provided for the Notice of Federal Tax Lien.
3. Withdrawing the Notice of Federal Tax Lien will allow you to pay your taxes more quickly; or
4. Withdrawing the Notice of Federal Tax Lien is in your best interest and the government’s best interest.

Ultimately, the best course of action is not to be subjected to an IRS tax lien by ensuring your taxes are paid on time. Suppose you find yourself in an unfortunate situation putting you in tax debt delinquency. In that case, it’s time to retain a tax resolution firm like Harmon Tax Resolution, LLC, to help you immediately resolve your back-tax issues. Multi-licensed Tax Attorney, CPA, IRS EA – Will Harmon will work with you or your company to properly analyze your situation and identify the most expedient and effective way to get your taxes paid in full so that the wrath of the IRS doesn’t fall on either you or your business.

Depending on the situation, Will Harmon provide you with the best course of action for dealing with the lien, or will he find a way to have it lifted altogether.

For a free consultation, call our office today to make an appointment. Call today so that you can sleep well tonight.

Can the IRS Put a Tax Lien on My House?

The IRS will likely put a tax lien on your home if you are in an unfortunate situation where you have a significant tax balance owed and have payments past due. The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property. A tax lien on your home dramatically impedes your ability to sell the property or take out an additional mortgage.

How Long Does It Take Before the IRS Considers a Lien on My Property?

If you are a homeowner and it appears questionable to the IRS that you will be able to pay tax debts of at least $10,000 before the collection statute expires, the IRS likely puts a lien on your home.

Will a Lien Allow the IRS to Take My Home?

No, since a lien is not a levy. An only lien secures the IRS’s interest in your property when you don’t pay your tax debt. A levy is where the IRS takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any real or personal property that you own or have an interest in. Although a lien does not give the IRS the right to take your property, having a tax lien is public knowledge and could make it difficult to either sell the property or refinance it.

How Can I Get Rid of the Tax Lien?

Quick Full Payment of Tax Debt

The first option is to avoid getting a lien by paying the tax debt in full before the lien is enacted. The IRS must give you notice and the opportunity to pay the tax debt before filing a lien. The challenge for the taxpayer is that only a ten-day notice period is required before the lien can be enacted, resulting in the taxpayer having to pay the tax debt in full during this window period.

Selling the property

This is another option, although it may not always be suitable. If you have enough equity in the home to pay off the tax debt, the taxes owed will be sent directly to the IRS, releasing the lien at the point of sale. You can still sell your home if the amount of equity is less than the tax due. The remaining amount will have to be settled differently. Please note that when the IRS issues a lien, it covers current property and future property acquired until the tax debt is fully paid.

Refinancing/Lien Subordination

Refinancing may be the best option if you don’t want to sell your home but have some home equity to pay the tax debt. Since it is challenging to obtain lending if the house has an IRS lien attached, getting the IRS to subordinate the lien will help. IRS might allow subordination if it agrees that this will allow for payment towards the tax debt. Subordination does not remove the lien but allows other creditors to move ahead of the IRS, making getting a loan or mortgage easier.

Installment Plan

The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:

• You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 before requesting withdrawal of the Notice of Federal Tax Lien)
• Your Direct Debit Installment Agreement must fully pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
• You are in full compliance with other filing and payment requirements
• You have made three consecutive direct debit payments
• You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.

If you are in significant tax debt and concerned that a tax lien towards your home is imminent or have already received one, contact the experienced tax attorney-CPA-EA at Harmon Tax Resolution. Free a free consultation call 772-418-0949 or visit our website www.harmonassociates.net to learn more.