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Federal IRS Tax Lien

A tax lien is the government’s legal claim to your property.
It is generally imposed when a taxpayer, such as a business or individual, fails to pay taxes owed. The lien attaches to ALL your property including property you acquire in the future. The IRS files tax liens to protect itself to secure payment of any delinquent tax debt when the property is sold and stays of record until it's satisfied or the statute of limitations expires. Obviously, a Federal Tax Lien can severely impede your life in many ways.

Federal IRS Tax Lien

A tax lien is the government’s legal claim to your property.
It is generally imposed when a taxpayer, such as a business or individual, fails to pay taxes owed. The lien attaches to ALL your property including property you acquire in the future. The IRS files tax liens to protect itself to secure payment of any delinquent tax debt when the property is sold and stays of record until it's satisfied or the statute of limitations expires. Obviously, a Federal Tax Lien can severely impede your life in many ways.


When the IRS Files a Tax Lien, It Shows on Your Credit Report, Attaching to Most Everything You Own
(Your Home, Your Vehicle, and Other Assets).

If You Sell Your Property, the IRS has the right to take the proceeds of the sale to Repay Your Tax Debt, Including Interest and Penalties.

TAX PROBLEM: A Tax Lien Happens When a Taxpayer, such as a Business or Individual, Fails to Pay Taxes Owed.
The IRS will not necessarily seize your property, however, applying a lien against your assets ensures the IRS will get first right to your property over other creditors when the property is sold (there are some exceptions such as a senior, previously-filed mortgage which gets repaid ahead of IRS). The existence of a tax lien significantly increases the risk to any other lender because the IRS or state taxing authorities get first priority of assets over other lenders, which can make your financial life for you very difficult. Your ability to get credit is severely impaired.

A federal tax lien will remain in place until:

  1. The tax liability has been paid off.
  2. After 3 months if the taxpayer owes less than $25,000 and enters into a direct debit installment agreement under the new IRS Fresh Start Initiative requirements, or
  3. The statute of limitations on the debt expires.

The federal tax lien can also be removed if the taxpayer settles or compromises the tax debt via a successful offer in compromise, or if the tax debt was discharged in bankruptcy.

When a lien is filed, it is likely not a complete surprise. The IRS must follow the process below before filing a tax lien on a taxpayer’s property:

  • Assess a tax amount owed through the taxpayer filing a tax return or the taxing authority filing a substitute return.
  • A tax bill is sent to the taxpayer which demands payment.
  • The taxpayer does not pay the tax bill owed by the deadline given in the letter.

After these three conditions are filled, the IRS may file a Notice of Federal Tax Lien.

If you file for bankruptcy, your tax debt lien and the Notice of Federal Tax Lien may continue after the bankruptcy. However, Tax Attorney Larry Heinkel and the Tax Problem Solver Team are experts at knowing whether your taxes qualify to be discharged in bankruptcy and, if not, what you need to do to make bankruptcy the right option for YOU.

CONSEQUENCE: A Tax Lien will Appear on Your Credit Report and Stay There Until the Debt is Taken Care of, Affecting Your Ability to Obtain Credit, Credit Cards or Loans.
Once a lien has been filed it will appear on the taxpayer’s credit report. With a tax lien present on a credit report it will be difficult for the individual or business to obtain future credit or loans (e.g. buying a car, home, obtaining a new credit card or signing a lease for a rental). It will also likely have an immediate impact on the taxpayer’s credit score. Note: If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.

The existence of a tax lien significantly increases the risk to any other lender because the IRS or state taxing authorities get first priority of assets over other lenders, which can make financial life very difficult for the taxpayer.

SOLUTION: The Tax Problem Solver Team will Help You get the Tax Lien Released and You’ll have a Better Chance to Obtain Credit – and Get Your Life Back!
When a tax lien is released, the county records will be updated to reflect the fact that the lien has been released and the IRS or state taxing authority no longer has a legal claim to the taxpayer’s property. Once the lien is released, it will be easier to obtain credit because the tax authorities no longer have legal claim over the property. The new IRS Fresh Start Program has made it a bit easier for taxpayers to get liens released. Here are some of the ways a lien can be released:

  • Direct Debit Installment Agreement: The IRS will consider the removal of a tax lien when a taxpayer enters into a payment plan. The payment plan automatically withdraws money from your account on a monthly basis until the outstanding tax debt is satisfied.
  • If you can prove that the IRS didn’t follow correct procedures when filing the lien, then the IRS must release the Tax Lien.
  • Expiration of statute of limitations: Once the debt has passed the collection statutes then the lien will be released.
Don’t Ignore the IRS – Things Get Bad Quickly!


HOW TO TAKE ACTION: Let Us Determine the Best Way to Release the Lien!
Our Tax Problem Solver Team is made up of experienced tax experts, including Tax Attorney, Larry Heinkel, who understand the inner workings of the IRS and state taxation authorities. Only a tax resolution company with a tax attorney on your side can present all the possible resolution options to fully determine the best way to resolve your tax situation and remove your tax lien – with the best option that fits your current and future financial needs. Our tax team always works on your behalf, so call us or fill out the form to get out from under your tax lien, and get your life back.

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Larry Talks About How The Tax Problem Solver Team Helps TaxpayersWho Owe Less than $10,000 Settle Their Tax Debt Situation Before It Gets Worse.

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