A tax lien is a legal claim (specifically, a “security interest”) held by the government against your property that is filed when you owe back taxes. The tax lien serves as notice to you and any other interested parties of the government’s claim. Having a valid tax lien gives a taxing authority – such as the IRS – a legal claim to equity in your property when you sell or refinance (subject to other creditors like a mortgage lender). In extreme cases, the government has the ability to seize your property and sell it to satisfy your tax obligations.
Usually, the IRS will attempt to collect back taxes before filing a tax lien. For example, people typically receive a series of notices demanding payment first. However, if payment is not received, the IRS is likely to file a tax lien, especially if you owe more than $10,000. If a lien has already been filed, thankfully there are some options to limit the harm caused to your day-to-day life. In some circumstances, it is even possible to have a tax lien removed.
The implications of living with a tax lien can be stressful, which is why it is important to have a tax advisor who is educated on the subject and willing to address your concerns. Although it may seem daunting to deal with a tax lien, there are ways to avert worst case scenarios and minimize the negative impact on your life. In fact, many people are surprised to find that they do not need to remove the tax lien to accomplish their goals or to prevent harm to themselves or their business, as long as they have a competent professional guiding them through the resolution process.
Even though the simplest way to remove a tax lien is to pay your back taxes in full, we understand this is typically easier said than done. Aside from paying all your outstanding taxes, the options for lien release or lien withdrawal are very fact dependent. For more detailed information on the options to remove a tax lien (whether by lien withdrawal, lien release, or lien discharge), as well as a review of when lien removal is unnecessary, please stay tuned for our multi-part series exploring each of these concepts in a more comprehensive fashion. As always, it is best to discuss your specific situation with a competent, licensed tax professional to determine your best course of action.
About Blueprint Resolution Services
Understanding how to remove a tax lien is a step in the right direction when it comes to addressing your tax problems. Blueprint Resolution Services is a trusted provider of tax resolution services that comes to the aid of both individual taxpayers and business entities throughout the United States.
Blueprint is staffed by licensed tax professionals who proudly deliver fully customized tax resolution services to each client. Our team members are exceptionally well-versed in many different tax resolution approaches, including but not limited to removing tax liens, releasing tax levies, negotiating offers in compromise, and securing installment agreements. At Blueprint Resolution Services, we also offer payroll and bookkeeping consultations, audit defenses, tax return preparation, and worker classification assistance.
Schedule Your FREE Consultation
A tax professional from Blueprint Resolution Services will be pleased to review your tax situation and recommend a suitable course of action. Whether you’re dealing with a complex tax problem or something a bit more basic, you can be confident that our team will leverage its 50-plus years of industry experience to help you achieve the best outcome possible for your situation. In addition to helping you address your tax issue, Blueprint can endeavor to minimize your tax problems moving forward by making detailed recommendations based on a comprehensive financial analysis.
To schedule your complimentary consultation, you can either call Blueprint Resolution Services at 720-835-2283 or 888-941-4135 (toll-free) or use our online contact form to briefly tell us about your tax problem.
The information provided on this website does not constitute legal, accounting, tax or other professional advice or services. The information provided is intended for general informational purposes only and cannot be used to avoid any tax obligations or penalties imposed rightfully by law.
