Law Offices of Maryam M. Golbarg, P.C.
Your Tax Relief Attorney
Tax Solutions
IRS Lien Solutions
What is an IRS tax Lien?
When you owe the IRS, a federal tax lien attaches to all of your current assets (such as real estate and personal property) and future assets acquired during the duration of a lien to protect the governments’ interests.
Liens are different from Levies. A lien is a legal claim against your property to secure payment of a tax liability, while a levy actually takes property to satisfy a tax liability.
Notice of Federal Tax Lien (NFTL)
The IRS may also file a public document, IRS Form 668(Y), the Notice of Federal Tax Lien (NFTL) — after sending you a Notice of Federal Tax Filing and Your Right to a hearing — to alert creditors that the government has a legal right to your property. It often forces you to pay or arrange to pay the tax liability because the NFTL will limit your ability to get credit and will adversely affect your credit rating. It also prevents you from selling your home or refinancing your mortgage. Even if you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
You have the right to appeal when the IRS notifies you that it intends to file a Notice of Federal Tax Lien. See IRS Form 12153.
How to Get Rid of an IRS Tax Lien?
There are different ways to release or reduce the effect of a Lien and a Notice of Federal Tax Lien. Below we discuss some of them.
Paying the tax liability in Full: Release of the Tax Lien
The IRS must release a tax lien within 30 days after full payment of the tax or if the tax is legally unenforceable (like expiration of statute of limitations). Certificate of Release of Federal Tax Lien — IRS Form 668(Z) — should be automatically filed by the IRS after a tax debt is satisfied, but sometimes it will not happen, and you need to contact the IRS to have them do that.
to sell the Property: Certificate of Discharge Of Property from Federal tax Lien
A discharge removes the lien from a specific piece of property. You have to request that the IRS discharge a specific property, so you are able to sell that property. You also need to convince the IRS that doing so is helping you to pay the tax liability to the IRS or that there is no equity in the property for the IRS to take.
To refinance: Certification of Subordination of federal Tax Lien
Subordination does not remove the tax lien, but allows other creditors to move ahead of the IRS, which make it easier to get a loan or mortgage. If granted, you will be able to refinance your mortgage.
To Improve Your Credit: Withdrawal of Filed Notice of Federal Tax Lien
A “withdrawal” removes the public Notice of Federal Tax Lien, however, you may still be liable for the amount due (if it has not been yet paid). You need to provide the documentation to prove certain situations that the IRS guideline allows withdrawal of a Notice of Federal Tax Lien, even if you still owe to the IRS.
We have successfully assisted our clients with their tax lien issues. We can guide you through the process and the requirements and find the right solution in your specific case.
