Federal Tax Liens

Posted by spswriter on September 29, 2015

Tax attorney from SiegelOne of the primary recourse for individuals, businesses, government institutions, and other entities like the IRS who are owed money is a legal instrument called a lien. A lien is a legal document that is filed with the relevant agencies and becomes attached to your property. The creditor will find it exceedingly difficult to sell the property without clearing the lien first, or as a part of the sale. A federal tax lien will be placed against all of your property, including real estate, personal property, and financial assets.

The IRS will place a lean on your property once it has assessed your liability and placed a balance due on the books. They will then send you a bill explains how much you owe and send a Notice and Demand for Payment. If you either refuse or neglect to make payment, the IRS will file a Notice of Federal Tax Lien to alert creditors that the government has a legal right to your property. Because this is a public document, it could affect your ability to obtain credit and may persist after bankruptcy.

The government really has no interest in seizing property and will work with the taxpayer it perceives to be working in good faith. A tax attorney can help communicate with the IRS on your behalf and negotiate an equitable deal.

The easiest way to remove a lien from a property is to pay the debt. The IRS will release the lean within 30 days. Other actions can be negotiated with the IRS to reduce the burden of a tax lien. Your tax attorney can help you negotiate the labyrinth of options and procedures. For more information about how your tax attorney at Siegel Tax Law can help you please contact us at 913-735-4829