Release IRS Tax Lien
An IRS Tax Lien is a legal filing on all of your property for the satisfaction of an IRS Tax Debt. The IRS will file a IRS Tax Lien in an attempt to collect back taxes owed. The best way to resolve your IRS Tax Lien is to resolve your tax debt as quickly as possible.
Avoiding a Tax Lien:
The Internal Revenue Code and the IRS’s own procedures, set forth in the Internal Revenue Manual, give properly informed taxpayers opportunities to prevent the filing of tax lien notices, but you must be pro-active and work with the IRS in an effective and timely manner. Failure to do so will inevitably result in the filing of lien notices in the public record, after which is it very difficult to get the lien removed.
The following information is not “etched in stone”, but, you can expect the IRS Tax Lien to be reported on Experian, Trans Union and Equifax after a full month has past since the filing of your IRS Tax Lien with your County Recorder’s Office.
Ideally, our Tax Help Hawaii Tax Attorneys or IRS Enrolled Agents need to protect your assets before the IRS Records the Notice to Lien with your County Recorder.
IRS Tax Lien and Your Real Property:
Many questions about the impact of the federal tax lien involve real estate, and the reach of the lien often turns on the particular form in which ownership is held, especially where there is more than one owner.
Most encumbrances on or interests in a taxpayer’s property, if properly perfected prior to the date on which the federal tax lien arises, have priority over the lien. Notice of the lien must be filed before it has priority over most subsequently perfected interests in the taxpayer’s property. But once the notice is filed, the federal tax lien takes priority over all but a few subsequently arising interests in the taxpayer’s property. Remember, the lien itself does not transfer or convey the taxpayer’s property to the IRS. Such transfer of ownership is accomplished either through a judicial foreclosure of the lien, or through an administrative action such as a levy.
The IRS Collection Process:
If you do not pay IRS Tax debt in full when you file your Tax Returns, you will receive a Tax bill from the IRS. This bill begins the IRS collection process, which continues until your account is satisfied or until the IRS may no longer legally collect your Tax Debt, for example if the collection period has expired.
The IRS can potentially attach an IRS Tax Lien to all of your assets, including your home, your car, your Social Security number, and even your spouse’s assets whether or not they were involved.
Some of the actions the IRS may take to collect back taxes owed include:
The IRS will file Notice of Federal Tax Lien,
The IRS will serve a Notice of Levy (most likely IRS Wage Garnishment or IRS Bank Levy); or
The IRS will keep a refund to which you are entitled.