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Tax Lien Attorney

Receiving a tax lien is a scary situation for taxpayers.

But all hope isn’t lost, as you can still file to request  a tax lien release, subordination, or withdrawal. Not sure what all these terms are? Our team of tax lien lawyers can help familiarize you with all these minute details to get on top of your taxes. 

What Is A Federal Tax Lien?

When a taxpayer fails to pay his or her taxes on time to the IRS (Internal Revenue Service), the IRS can issue a legal claim against the taxpayer’s property. The lien covers all of the taxpayer’s  assets, including personal property, real estate, and other financial sources. Notice. 

Is Federal Tax Lien A Public Record?

When you fail to pay the amount owed, the IRS files the Notice of Federal Tax Lien, a public document alerting other creditors that the government owns your property. It can be registered in multiple agencies and courts, allowing anyone to look for the record. 

Note that property owners or banks usually conduct this kind of search when you buy or sell a house or request credit.

Does It Affect Your Credit?

Yes, a tax lien can affect your credit, as the credit reporting agencies usually incorporates the Federal Tax Lien in your credit report. Although a Federal Tax Lien can affect your finances, it isn’t the primary issue; the government can facilitate collection using the tax lien that could result in the foreclose of your house.

Does It Survive Foreclosure?

Unless the proceeds from the foreclosure pays off the tax lien in full, the tax lien continues to apply to all the remaining property and assets you own. It attaches to “all property and rights to property” and not just to a specific share, so it also covers any asset you buy after the lien is filed. 

How To Get Rid Of A Federal Tax Lien?

For starters, a taxpayer has appeal rights in case the federal tax lien was registered inaccurately, and our tax attorneys can challenge its validity through a collection due process hearing. However, if the lien is properly filed, there are still some options to release it. We’ll discuss them here:

1. Property Discharge

We mentioned that the tax lien applies to all your assets, but a “discharge” can remove it from some parts of your property, as determined by the Internal Revenue Code. A certificate under the IRC section 6352 can help you get rid of the lien, and here’s how you can apply for it:

  • Fill out Form 14135 
  • Send it to the Advisory Group Manager of the IRS

You’ll have to submit the application 45 days prior to the transaction date when the certificate is needed. That way, there will be enough time for review, determination, and additional document submission if required. 

Here is the information that’ll be reviewed by the IRS to judge your eligibility:

  • Personal details and the last four digits of the social security number
  • Monetary information about the property like its proposed sale amount and the proceeds that’ll go to the IRS
  • The basis for discharge
  • Property description

If the information you provide cuts the eligibility criteria, your property will be released from the lien in 30 to 45 days. 

2. Subordination

Subordination doesn’t directly remove a tax lien from your property, but it allows creditors to move past it, making it easier for you to get a mortgage or loan. Our tax attorney can help you apply for it – all you have to do is:

  • Complete Form 14134 
  • Mail it to the IRS Advisory Group Manager with the required attachments

3. Withdrawal

You’ll still be liable for the amount of tax you owe to the IRS, but under a withdrawal, the Notice of Federal Tax Lien will be eliminated. This assures that the creditors won’t have to compete with the IRS for your property. Furthermore, there are two options to go about a withdrawal; they are:

  • Applying after the lien has been released
  • Applying after switching to a 60 month Direct Debit agreement from the regular installment agreement

Both these options have different eligibility criteria, so look into the details before requesting a withdrawal. 

How Can We Help?

The amount of paperwork required in the procedure is substantial. Not only is the amount of paperwork overwhelming, but the lien removal or subordination procedure is also very likely to go wrong if attempted by an amateur. 

That’s why we have a team of dedicated tax attorneys who specialize in state tax lien law and in solving relevant tax problems. They are well-versed with all the documents & filing work required and can help you sail through the tax lien process smoothly. 

Furthermore, we offer free consultation in your best interest to help you make the right decision  based on the particular situation. So, get in touch with us today and try our tax lien release services!