IRS liens

Information about The Tax Resolution Company

A lien is nothing more than a claim against your property. As soon as a tax is assessed against you, a statutory lien is created. In other words,  a claim against your property in the amount of the tax owed. However, until a lien is filed with the County Courthouse (perfected), it is not enforceable against third parties. 

The IRS typically files two liens, one on real property and one on personal   property. This includes ALL your property. It is typically filed in your county  of residence and in other counties the IRS knows or thinks you may have property. As a practical matter however, the IRS does not go after personal property unless you are completely uncooperative and the property has significant value. It is your home they are typically interested in. 

There are only five circumstances under which the IRS will release a lien:  

 (1) The tax is paid in full or abated. 

 (2) You post a bond equivalent to twice the tax owed. 

(3) You can convince the IRS that releasing the lien will help you pay the tax quicker.  

(4) You compromise the liability for less than is owed. 

(5) The time expires for the IRS to collect the tax. This is referred to as the "Statute of Limitations". The IRS has ten years from the date of assessment to collect the tax. There are certain things that can extend the statute so be careful about making assumptions about the date. We would be happy to find this information out for you.   

Other than paying the tax, the other options are very difficult to accomplish.  However, an Offer in Compromise offers the best hope if you owe the tax  and can't ever pay it.

One important thing to keep in mind about liens is that if a lien is filed, filing  bankruptcy will not help you regarding the property a lien has been filed on.  In other words, even though the underlying tax may be discharged in bankruptcy, the IRS still has a claim on your property equivalent to the amount of tax owed.  Liens can be tricky things. It is recommended that you consult with a firm, such as ourselves, with experience in dealing with liens.

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