IRS Tax Lien

Washington Tax Service Can Help you Resolve Your Tax lien

By filing a Notice of Federal Tax Lien, the IRS is publicly telling the taxpayer's creditors that it has a claim on some or all of the taxpayer's property (such as a house or automobile) and also on all of the taxpayer's rights to property (such as a business's Accounts Receivable.)

This includes property acquired after the IRS Tax Lien has been filed. Although technically the assets still belong to and can be used by the taxpayer, the IRS Tax Lien prohibits any sale of those assets by the owner because of the secured interest that the Lien grants to the IRS. You can think of an IRS Tax Lien as a tool for 'staking out' the assets of a tax debtor. Even if the taxpayer does not have any significant assets, the IRS tax lien will still show up on the taxpayer's credit report. A Federal Tax Lien can make getting a loan; a new credit card or signing a lease nearly impossible because of the damage it does to one's credit rating.

The IRS will not permanently remove a Tax Lien until the taxpayer's debt is completely paid in full or settled out for less that the amount owed. However, the IRS is often willing to Subordinate their lien to another lender if by doing so will assist the taxpayer in paying back their overdue taxes. For instance, if a tax debtor who owned a house wanted to apply for a home equity loan or refinance, then the IRS would consider granting a Lien Subordination to give the new lender's lien first postion on the property so long as some or all the proceeds of the loan would be paid to the IRS. Likewise, if the owner was going to give up the property entirely, then he or she could apply for a discharge of the Tax Lien as long as the IRS would receive any proceeds net of closing costs.

We specialize in assisting clients who are dealing with an IRS or State Tax Lien. If you do not have the funds to repay the debt in one lump sum, you may be able to submit an Offer in Compromise to settle the tax debt for a reduced amount, or set up a Payment Plan to pay off the debt over time.

If you would like to discuss any of your tax lien and tax debt issues or if you need more information on Lien Subordination, please contact us by filling out the form on this page or call one of our Tax Specialists at 888-282-4697.