IRS Tax Lien
If you are faced with a IRS tax lien, or you just received a Notice of Federal Tax Lien (see NFTL) you need to act quickly to get things resolved. You have 10 days to respond, and make satisfactory arrangements with the IRS before the IRS tax lien is filed. Once the deadline has passed, the IRS will file a federal tax lien with your local county, parish, or state that secures your IRS debt to your real estate property (see IRC Section 6321).
What’s the purpose of an IRS tax lien?
Essentially, the federal tax lien serves one main purpose; to secure the IRS’ position! What that means is that in order to ensure the IRS gets paid the tax debt you owe them, they will officially put their name on any real estate property you own as a lien holder. In real terms what this means, is that you as the property owner can’t sell the property without settling your tax debt with the IRS first!
There are several ways of having a federal tax lien removed or released, but the IRS will not usually release it until you have made payment arrangements with them. When they do, they issue what is called a Certificate of Release of Federal Tax Lien.
Because of the severity and complexities involved in a federal tax lien issue, it is a matter best left to a tax professional. In fact, the underlying tax problem that precipitated the tax lien to begin with will need to get resolved first, before the IRS will remove the federal tax lien. So again, this is another good reason why you should consult a tax professional for matters involving an IRS tax lien.
If you have recently received an IRS tax lien (Notice of Federal Tax Lien), you need to act quickly to get things resolved. Please consider speaking with a tax professional to at least discuss your options. To speak directly with a tax advisor at our firm, call us at (888) 918-8121. The call is free, the consultation is free, and you are under no obligation to hire us.