Montana
Tax Attorneys

Stopping Tax Levies & Liens

A federal tax lien is a legal claim by the IRS on a taxpayer’s property or rights to property as a security for unpaid tax debt. A federal tax lien is automatically created when a taxpayer neglects or refuses to pay their tax debt after receiving a notice and demand for payment from the IRS.

While the federal tax lien arises automatically, the IRS files a Notice of Federal Tax Lien (NFTL) with state and local authorities. This filing is done in the county where the property is located or where the taxpayer resides. The NFTL establishes the IRS’s priority against other creditors and protects the government’s claim on the taxpayer’s property.

The filing date of the NFTL determines the IRS’s priority position against other competing liens. It establishes the date from which the IRS’s claim on the property is effective.

The federal tax lien remains in place until the tax debt is fully paid or becomes unenforceable due to the expiration of the collection statute expiration date (CSED). The IRS typically has ten years from the date of assessment to collect the tax debt. However, the collection period may be extended or suspended under certain circumstances.

If a taxpayer transfers property subject to a federal tax lien, the lien remains attached to the property. If the property is sold, the lien attaches to the proceeds of the sale.

Enforcing the federal tax lien against certain assets, such as cash sale proceeds, can be challenging for the IRS. The IRS may face difficulties in obtaining the funds when the asset subject to the lien is liquidated.

The NFTL has a specific duration, and it must be refiled within the required refiling period to maintain its priority based on the initial filing date. If the refiling period expires without the NFTL being refiled, the lien may self-release.

It’s important to consult with a tax professional or attorney for personalized advice regarding federal tax liens and their implications for your specific situation.

Property owners in Montana are required to pay property taxes, which are used to fund public services, schools, roads, parks, etc. The tax amount is typically based on the assessed value of the property.

If you have a mortgage on your home, the loan servicer may collect money as part of your monthly mortgage payment to pay the property taxes. The servicer holds these funds in an escrow account and pays the taxes on your behalf. However, if taxes are not paid through an escrow account, you are responsible for paying them directly.

When homeowners fail to pay their property taxes, the overdue amount becomes a lien on the property. A tax lien is a claim against the property to ensure the debt is paid.

In Montana, if property taxes remain unpaid, the county treasurer can hold a tax lien sale and sell the tax lien in the form of a “tax lien certificate” to a third party (assignee). The assignee can apply for a tax deed if the delinquent amounts are not paid before the redemption period expires.

If the tax lien is not redeemed within the redemption period, the assignee can apply for a tax deed. The property is then auctioned off to the highest bidder at a tax deed sale.

Montana law protects at least some of the homeowner’s equity by requiring the county treasurer to distribute surplus funds to the legal titleholder of record after receiving payment from the tax deed purchaser.

Homeowners in Montana have a right to redeem the property by paying the amount owed, including taxes, interest, and other charges, within a specified redemption period. The length of the redemption period varies depending on the circumstances.

Property tax liens generally have priority over mortgage liens or deed of trust liens. If a homeowner loses their property through a tax deed sale, mortgages may be wiped out. Mortgage servicers may advance funds to pay delinquent property taxes to prevent foreclosure.

After reimbursing the servicer for paid taxes, penalties, and interest, the loan servicer may set up an escrow account. Homeowners pay a portion of estimated annual property taxes and other expenses into this account, which the servicer then uses to pay taxes and other escrow items on their behalf.

Unfiled Tax Returns

Working with a tax attorney who specializes in tax law can provide significant advantages when dealing with tax issues in Montana. They have a deep understanding of the specific tax laws and regulations in the state, allowing them to provide tailored advice and guidance based on your unique situation.

Tax attorneys, such as those at Anderson Bradshaw, can assist you in navigating complex tax systems, whether you’re facing disputes, audits, compliance issues, or other tax-related challenges. They will act as your advocate and ensure that your rights are protected when dealing with tax authorities like the Montana Department of Revenue or the IRS.

By having a tax attorney represent you, they can handle communications, negotiations, and legal proceedings on your behalf. This relieves you of the burden and stress associated with tax issues, allowing you to focus on other important matters.

During a consultation with a tax attorney, they will carefully analyze the relevant tax laws, assess your specific situation, and develop a strategy to achieve the best possible outcome for you. They can provide personalized advice and assistance based on their expertise in Montana tax laws.

Tax attorneys also possess knowledge of tax planning strategies, allowing them to provide valuable advice on optimizing your tax situation and guiding you through the legal aspects of taxation. Whether you are an individual or a business entity, their expertise can help you effectively manage your tax matters.

It is crucial to stay informed about changes in tax laws and regulations, and a qualified tax attorney can provide you with accurate and up-to-date advice specific to Montana. They can help you navigate any recent changes that may impact your tax situation.

When selecting a tax attorney, conducting research and due diligence is important. Consider factors such as their experience, reputation, track record, and expertise in Montana tax laws. Consultations with potential tax attorneys can help you assess their suitability and determine if they are the right fit for your specific tax situation.

Contact Our Montana Tax Attorneys

Employing the services of a tax attorney, such as those at Anderson Bradshaw, can indeed provide significant benefits when dealing with tax issues in Montana. Their specialization in Montana tax laws and regulations allows them to offer personalized guidance and representation tailored to individual situations.

A tax attorney from Anderson Bradshaw will have a deep understanding of Montana tax laws and can assess your circumstances to provide accurate and tailored advice. They can analyze relevant tax laws, help you navigate audits, wage garnishment, failure to file taxes, or any other tax-related matters you may be facing. By working with a tax attorney, you can gain a clear understanding of your rights, obligations, and available options.

Tax issues can be stressful and complex, but having a tax attorney by your side can help alleviate that burden. They will ensure the protection of your rights throughout the process, working towards achieving the best possible outcome for you. They will effectively communicate with the Montana Department of Revenue or the IRS on your behalf, advocating for your interests and negotiating when necessary.

Anderson Bradshaw’s expertise in tax matters and their commitment to personalized service can be invaluable when navigating Montana tax laws and regulations. They will guide you through the process, assist with tax compliance, and work towards efficiently and effectively resolving your tax problems.

By consulting with a qualified tax attorney, such as those at Anderson Bradshaw, you can receive accurate and tailored advice specific to your situation. This will ensure that you have the support and representation needed to effectively address your tax problems and work towards a favorable resolution.

Our tax attorneys provide IRS tax help for residents all over Montana including Billings, Missoula, Great Falls, Bozeman, Butte, Helena, Kalispell, Belgrade, Anaconda, Havre, and many more. Call (877) 986-1156 or contact our Montana tax attorney online to receive a free consultation.