Before the IRS can attach a federal tax lien on your property, it must follow approved collection procedures. The IRS must determine your liability and send you a Notice and Demand (the “Notice”) for payment. A tax lien can be liberally defined as a legal claim to all your property, including real estate, personal property, and financial assets. In other words, Uncle Sam is entitled to the asset and the proceeds from that asset until you make good on your financial obligations to the IRS. You want to avoid being slapped with a tax lien for several reasons:
Selling property with a tax lien attached is almost impossible to accomplish, since the tax lien travels with the property during a sale, and buyers are understandably leery of picking up your debt.
The IRS has very broad powers when filing a tax lien.
Tax liens ruin credit ratings.
Tax liens are placed in effect for 10 years and can be extended indefinitely in 10-year increments and are not released even if the tax debt is discharged in bankruptcy.
And you have to cut through a good deal of red tape to get the tax lien removed, even if you have cleared the principal tax deficiency.
If a Notice arrives in your mailbox, call a tax attorney at Law Offices of Christy Lee, P.C. We will:
- Determine whether the IRS was justified in filing the tax lien, whether the tax lien was correctly filed, and how long the tax lien will attach to the property.
- Assess your financial situation and identify your options concerning the tax lien. We will also discuss with you the consequences of each of the alternatives for moving forward.
- Negotiate with the IRS concerning the tax lien. In some instances, the IRS may have inappropriately placed the tax lien on your assets, and we will argue on your behalf to have the tax lien removed. Depending on the circumstances, we may recommend that you file a bond with the IRS, guaranteeing payment of the debt, or we may apply for a discharge of the tax lien when you market the asset for sale. We can also request that the tax lien be rendered secondary to another lien through lien subordination.
- And advise you concerning the preferred methods to avoid tax liens in the future.
If you are stressed about the threat of a federal tax lien, give our offices a call. As a tax boutique, Law Offices of Christy Lee, P.C., will negotiate with the IRS concerning ways to resolve your tax deficiencies, so that your assets remain your own and your credit in good standing. We will protect your rights when you face aggressive collection tactics, and we offer proactive strategies to safeguard your assets for the future.