In our experience, tax liens are the most powerful IRS tax collection tools of all. The IRS and State taxing agencies have the power to collect back taxes by levying on taxpayer’s’ property as a result of a tax lien. When a person owes back taxes, the IRS and State agencies gain a lien on all of that person’s assets, after meeting certain statutory requirements. The lien attaches to all rights, title, and interest of the taxpayer. Once the IRS or the State tax agency has a lien on the assets, they may enforce that tax lien by administratively levying the assets.
Recorded with one or several county recorders, a tax lien basically tells the world that you owe back taxes, and is generally devastating to the taxpayer’s credit. Liens make it very difficult to obtain credit or to sell real estate. A lien may also effect employment and professional licensing, especially in the financial and insurance industries.
Although the taxing agencies are extremely reluctant to release or modify IRS liens, we might be able to get the government to subordinate its lien to a lender, thus allowing the client to borrow money against his assets to satisfy all or part of the tax lien. Our lawyers also make sure that the tax agencies have met all legal requirements for a legal tax lien filing. If any defects are discovered in the IRS lien process, our tax attorneys immediately appeal the filing of the tax lien.
Our tax lawyers have developed a proven plan of action for dealing with IRS tax liens:
- Make sure it is legal, and all procedures have been followed.
- Evaluate the tax lien’s effect on the client.
- Determine the feasibility of appealing, subordinating or discharging the lien.
- File the necessary forms to appeal, subordinate or discharge the tax lien.
- Resolve the liability that gave rise to the lien.