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A tax lien is a claim against property in the amount of unpaid local, state or federal tax. The IRS and State taxing agencies are authorized to collect back tax by assessing a levy on an individual’s property. The IRS and state agencies gain a tax lien on any individual’s assets in the amount due after meeting certain statutory requirements, if the individual owes back tax.
Before a Notice of Federal Tax Lien is filed, the IRS must assess the liability of the individual, send the individual a Notice and Demand for Payment (how much he or she owes in tax) and prove the taxpayer neglected or refused to fully pay the debt within 10 days after the notification.
All rights belonging to the individual, whether real or personal, tangible or intangible can be subjected to tax lien. The Federal Tax Lien statute empowers an administrative body (local, state or federal) to seize in the interests of the government all property and rights to property of the individual, if the individual fails to pay any assessment of tax, plus interest, penalties, or costs.
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The IRS warns that "once a lien is filed, your credit rating may be harmed. You may not be able to get a loan to buy a house or a car, get a new credit card, or sign a lease. Therefore it is important that you work to resolve your tax liability as quickly as possible, before lien filing becomes necessary."
Taxing agencies release or modify tax liens very unwillingly, however there often a chance to get the government to subordinate its tax lien to a lender. In this case, the individual may borrow money against his assets to satisfy all or part of the tax lien. Our representatives can make every effort, on your behalf, to be ensured the tax agencies have met all legal requirements for filing a tax lien. Should any defects be discovered in the tax lien process, our representatives can argue against the filing of the tax lien.
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