What is a Tax Lien?

A tax lien is an official declaration that the IRS has a legal right to the property because of your federal tax debt. It occurs after you have neglected to pay your tax debt by the deadline. A lien does not involve actually seizing the property; instead, it only secures the interest in the property and signifies that the federal government has a priority over any other creditors. A tax levy, on the other hand, is the actual taking of your property. A tax lien affects you by being attached to any and all assets, including future assets you may acquire during the life of the lien. It also can affect your credit and limit the ability to sell or refinance any of your assets until you have repaid your debt.

How to Remove a Tax Lien?

Tax liens require action immediately. The easiest way to remove a tax lien is to repay your tax debt in full. Your lien will be discharged within 30 days of your payment being processed. However, most people who owe a significant amount of tax debt cannot afford such a large payment. You have the right to appeal the process if you believe that the amount you owe is incorrect. You also have other options for removing the lien and settling your tax debt.

For example, you can apply to have a discharge of property, which removes your lien from a specific property. You can also apply for subordination, which will allow other creditors priority over the IRS, which may help you secure a loan or mortgage. You can also apply for a withdrawal of the tax lien. Even if the tax lien is removed, you will still be liable for the full amount of federal tax debt unless you take other actions. Another option for removing a federal lien on your assets is by applying for an Installment Agreement or an Offer in Compromise. These are two tax relief solutions that can help you to negotiate a way to pay back your federal tax debt without entering a financial hardship or harming your credit.

If you have a tax lien call one of our experts at 866-258-0008 and they can help remove it for you.