Signed in as:
filler@godaddy.com
Avoid a Lien?
A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after:
The IRS:
You:
The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.
You can avoid a federal tax lien by simply filing and paying all your taxes in full and on time. If you can’t file or pay on time, don’t ignore the letters or correspondence you get from the IRS. If you can’t pay the full amount you owe, payment options are available to help you settle your tax debt over time.
A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.
Lien subordination allows the IRS lien to be moved to a lower priority compared to other creditors. This can help you secure a loan or refinance your mortgage.
In some cases, you can request a lien withdrawal, which removes the public Notice of Federal Tax Lien. This doesn't mean the debt is forgiven, but it can make it easier to obtain credit.
This option removes the lien from a specific property. It can be useful if you want to sell a particular asset. Eligibility is determined by specific Internal Revenue Code provisions.
A Certificate of Non-Attachment may be issued when any person is, or may be, injured by the appearance that a federal tax lien attaches their property. A certificate of non-attachment can be requested for situations to clarify the attachment of the lien to certain property
Entering into a payment plan with the IRS can sometimes lead to the withdrawal of the lien, especially if you set up a Direct Debit installment agreement.
IRS lien subordination is a process that allows a federal tax lien to be moved to a lower priority compared to other creditors. This can be particularly useful if you need to secure a loan or refinance your mortgage but have an existing IRS tax lien on your property.
When the IRS places a lien on your property due to unpaid taxes, it generally takes priority over other creditors. This means that if you sell the property, the IRS gets paid first. However, through lien subordination, the IRS agrees to let another creditor move ahead of them in priority.
Securing a Loan: If you need a loan or want to refinance your mortgage, lenders may be hesitant to approve it if the IRS lien has priority. Subordination allows the new lender to take a higher priority, making it easier to secure the loan.
Refinancing: It can help you refinance your mortgage at a lower interest rate, potentially saving you money in the long run.
Lien Remains: Subordination does not remove the lien; it only changes its priority.
Eligibility: You must demonstrate that subordination will ultimately benefit the IRS, such as by increasing your ability to pay the tax debt.
Access to Financing: It can help you get the financing you need despite having an IRS lien.
Improved Cash Flow: By refinancing at a lower rate, you can improve your financial situation and potentially pay off your tax debt faster.
Complete the appropriate form.
Provide Necessary Documentation: This includes details about the property, the lien, and the new loan or refinancing terms.
Submit the Application: Mail the completed form and documentation to the IRS Advisory Consolidated Receipts office.
Review and Approval: The IRS will review your application and, if approved, issue a Certificate of Subordination.
Important Considerations
Timing: Submit your application at least 45 days before the transaction date to allow sufficient time for processing.
Please reach us at info@thegamblingroup.com if you cannot find an answer to your question.
You can reach us at info@thegamblingroup.com if you cannot find an answer to your question.
We specialize in income tax, sales tax, and property tax consulting services.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.