IRS Tax Lien – How to release it
The IRS or Internal Revenue Service is the largest collection agency in the country and it has the full power and authority of the United States Government in order to collect the funds that are owed to it by individuals and businesses. It is governed by the Internal Revenue Code and it has all the power and authority it needs to carry out its mission. The IRC contains a number provisions in which the IRS can carry out its duty of collecting taxes owed. The IRS Tax Lien is one of several tools that the agency has at its disposal to collect the money it is owed.
Since all working individuals and businesses operating within the United States are required to pay the prescribed amount of taxes based on their income and the associated table that dictates how much money that the government should receive from them based on their income level and the newest guidelines contained in the US Tax Code. It is the responsibility of the IRS to ensure that the government receives all of the tax money that it is owed, or file federal tax liens to protect the government.
Call us for a free and confidential evaluation at 1-888-498-2937.
What ways that IRS has to collect what is owed to the government
When it is determined that a taxpayer owes money, the IRS has a number of things that it is authorized to do. Since it has the full power and authority of the United States government behind it, you can be sure that the tactics that it uses leave little doubt that you have no choice but to comply.
After going through the lengthy process of determining that the taxpayer will not pay the tax debt that is owed, the IRS has numerous tools that it can use in order to collect the money that you owe. The IRS Tax Lien is the least harsh of all of the ways that it can use to secure the repayment of the debt. There are a couple others that go even farther and involve either seizing of assets or confiscating of income directly from your paycheck. The IRS Tax Levy and IRS Wage Garnishment respectively, are each used as a last resort when the IRS sees no other choice.
What is an IRS Tax Lien?
The IRS has the authority to place a lien on your property (any assets that you own including your home) in attempts to secure repayment for taxes that is owed to the Federal Government. In the case of a home or car the IRS Tax Lien trumps all other liens, this means if the property is sold the IRS gets its money needed to satisfy the debt first and all other creditors get what is left.
The sole purpose is to encourage the taxpayer to repay the debt as quickly as possible. This is because once the lien is in place, it attaches to all assets that are purchased after the lien is in place. The lien is also public record so the credit bureaus will be well aware of it and it will definitely negatively affect your credit for sure.
Consequences of a tax lien on your home
While an IRS Tax Lien technically does not cost you directly, there are ways that it can make your life a bit harder to live. This is especially true if you are needed to or wanting to sell your home that has a tax lien on it. Since the tax lien is public record when a title search is done in preparation for a sale of the home, the tax lien will show up. This will make it difficult to sell since lenders and buyers will be a bit skittish when they see that they are dealing with a tax lien.
However, you do have the right to request that the IRS release the lien in order for you to sell the home. It has all the discretion that it needs in order to approve or deny the request. If it approves your request, the lien will be released and you will be given a form that you can present to the buyer and lender showing that there is no longer a lien encumbering the potential sale.
The real, hidden danger of an IRS Tax Lien
There is one aspect of the tax lien that could be placed on your home in the event you owe the back taxes. The IRS has the right to foreclose on your home at any point during the 10-year period that the tax lien is in effect. This is quite different from any other lien where the lien holder cannot whenever they feel like to seize your property. Then sell it in order to pay off your tax debt which also takes away any and all equity that you may have built up over the years. This is one of the more serious consequences that may not be widely known.
As you can tell it would be a shame to let your tax-related debt to the IRS gets to the point where they would be inclined to slap your home with an IRS Tax Lien. Our tax defense firm can resolve your tax problem.
Call us for a free and confidential evaluation at 1-888-498-2937.
