A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after the IRS assesses your tax liability (either through audit or through a self-assessed tax return) and sends you a bill that explains how much you owe and you do not fully pay the liability in time or otherwise make settlement or payment arrangements. The IRS can the file a public document called the Notice of Federal Tax Lien to alert creditors that the government has a legal right to your property. For the IRS to so, it must send you a notice informing you of your collection due process rights with an opportunity for hearing. A notice of Federal tax lien affects your ability to buy or sell a property or business, qualify for a loan or mortgage, and it affects your credit.
Sometimes we can get the Notice of Lien removed or withdrawn. Sometimes the IRS places a Notice on the wrong property! If that happens, we can usually get it removed. There are many ways to remove a lien although most require payment or other settlement options. Contact us today to find out what your options are.