Tax Lien Help

The IRS and State taxing agencies have the power to collect back taxes by placing a lien on all of the taxpayers' real and personal property. When a person owes back taxes, the IRS and state agencies gain a tax lien on all that person's assets after meeting certain statutory requirements. The tax lien attaches to all rights, title and interest of the taxpayer. Once the IRS or a state tax agency has a tax lien on all of a taxpayer's assets, they may enforce that tax lien by seizing his or her assets.

A tax lien is filed by the government to protect its interests. Recorded with one or several county or state recorders, a tax lien basically tells the world that you owe back taxes, and is generally devastating to the taxpayer's credit. Tax liens make it very difficult to obtain credit or to sell real estate.

The effect of the Federal Tax Lien statute is that when any person fails to pay any assessment of tax, plus interest, penalties, or costs, a tax lien in favor of the United States arises upon all property and rights to property, whether real or personal, tangible or intangible, belonging to the taxpayer. Even if the taxpayer makes partial payment, a tax lien will arise for the balance of the tax.

Although the taxing agencies are extremely reluctant to release or modify tax liens, I might be able to get the government to subordinate its tax lien to a lender, thus allowing the client to borrow money against his assets to satisfy all or part of the tax lien. In addition, I also verify that the tax agencies have met all legal requirements for a legal tax lien filing. If any defects are discovered in the tax lien process, I will immediately appeal the filing of the tax lien.