A tax lien negatively impacts your credit. A tax lien may prohibit
your ability to purchase, sell, refinance, or transfer real
property. Moreover, it may negatively impact your ability to gain
employment as well as retain employment.
The government files a tax lien to “protect” its interest. That
is the routine explanation given. Yet, in many cases, the tax lien
filing actually jeopardizes the payment of taxes.
It merely further cripples the taxpayer, while not
facilitating the collection of any taxes.
Under the law,
the IRS is to release a Federal tax lien within 30 days of when
the liability is fully paid or becomes legally unenforceable or
the IRS accepts a bond for payment of the liability. There may be
payment options which allow payments without the filing of a tax
Demands for payoff of a tax lien can be made through
where a tax lien has been filed, a Certificate of Discharge can
remove an IRS tax lien from specific property, thus, allowing a
sale to a third party (even though the taxes are not completely
paid). Other options
may include subordination.
Tax Lien Reference Materials appear on this linked page.
Please call and discuss you options with an experienced Tax
Call in your TaxSOS today.