IRS Tax Liens on Property
If you have a significant amount of tax debt that remains unpaid, an issue that can arise is the IRS deciding to place a lien on your property. If you received a notice from the IRS related to a lien, it is important to understand the different types of liens and the ramifications of a tax lien.
What the IRS Put a Lien On
The IRS has the capacity to place a tax lien on all property and property rights possessed by a taxpayer. Basically, this means the scope of a tax lien extends to both tangible property and rights to property, including:
- Future interests
- Contingent interests
- Executory contracts
Once a tax lien is issued, it automatically attaches to any properties acquired by the taxpayer throughout the entire duration of the lien. Basically, this means any property you purchase or inherit after the IRS placed a tax lien on your account is subject to the lien. In addition, property that you’ve owned for decades is also subject to the lien.
Types of Property Subject to an IRS Tax Lien
Liens can be placed on any property that you own, including:
- Business properties
- Personal possessions
What To Do If You are Concerned About an IRS Tax Lien
If you are worried about an IRS tax lien being placed on your property,it is important to be proactive and act as soon as possible. Unfortunately, many people ignore the lien in the hopes that it will just go away. Here is the truth – the lien is not going away and will ultimately become an unpaid tax bill.
If you are proactive and contact the experienced tax professionals at Anderson Bradshaw Tax Consulting, you may qualify for an IRS forgiveness plan, or you can negotiate an Installment Agreement, Offer in Compromise, or have a Currently Non-Collectible status placed on your account.
Getting Rid of an IRS Tax Lien
In an ideal world, if possible,it would be best to try to avoid the issuance of an IRS tax lien rather than figuring out a way to get rid of the lien.Do your best to try to file and pay all your federal taxes on time. If circumstances force you to fall behind on a tax payment, don’t ignore a request for payment from the IRS.
In terms of getting rid of an IRS tax lien, paying the tax debt in full is the easiest and best option. Once the debt is paid, the IRS will release your lien within 30 days of payment. In addition to repayment, you have other options if you are unable to pay the unpaid debt, including:
- Discharge of Property: You may be able to file for a “discharge” that removes the tax lien from a specific property you own. However, the IRS has very strict rules for a taxpayer to be eligible for this option.
- Subordination: This option does not remove your tax lien. Instead, it provides relief by allowing creditors to go before the IRS. This can be important if you need to apply for a mortgage or loan. Again, there are strict eligibility rules to qualify for subordination.
- Withdrawal: This option removes the IRS’s public Notice of Federal Tax Lien without removing your liability.
Have Questions About Tax Liens or Obtaining Tax Debt Relief? Contact Anderson Bradshaw Today
The tax professionals at Anderson Bradshaw have helped thousands of businesses and individuals resolve their tax issues and secure tax debt relief for over 32 years. To learn more, contact Anderson Bradshaw at 877.550.3911 to schedule a 30-minute Free Tax Consultation or fill out the quick contact form here.