Tax Liens And Your Credit- How To Get Out Form Under!

For those who may not know, a tax lien greatly damages your credit score disabling you to obtain loans, get credit cards or buying/refinancing your home. A tax lien is a claim on property to satisfy a tax debt, and a public notice is generally filed to protect the government’s interest in unpaid taxes that are owed. By federal law, the IRS is given an automatic lien on a taxpayer’s property, including real, personal, tangible, intangible, and after-acquired, when the taxpayer is notified of a tax debt and the debt is not paid within ten days.

A “Notice of Federal Tax Lien” is then filed to notify the public and the taxpayer’s creditors that the IRS has a claim against the taxpayer’s property. The tax lien becomes part of the public record when it is filed with the clerk of the county in which the taxpayer lives, operates a business, and/or owns real property. The IRS must then notify the taxpayer within five days of the tax lien filing of the right to a hearing. At the hearing, the taxpayer can contest the validity of the lien. If unsuccessful, the taxpayer may appeal the determination to the U.S. Tax Court or a federal district court.

A tax lien would be released once the underlying debt is satisfied or it becomes unenforceable due to the lapse of time. The tax lien may also be released once an offer in compromise is accepted and the offer amount satisfied. However, even after it is released, the tax lien may be reflected on the taxpayer’s credit report for up to ten years and negatively affect their credit and borrowing ability.

The IRS may withdraw the public notice of tax lien before full payment if: 1) the filing of the notice was premature or was not in accordance with administrative procedures; 2) the taxpayer entered into an installment agreement to pay the tax debt; 3) withdrawal of the notice would facilitate collection of the tax debt; or 4) withdrawal of the notice would be in the best interests of the government and the taxpayer.

Sometimes the IRS will allow for a Subordination of the Lien. In this procedure, the IRS Lien is made secondary (that is, Subordinate) to the interest of another creditor so that the taxpayer can acquire some form of private financing with which to repay the debt. Lien Subordination can be beneficial to a taxpayer who owns a house and wants to get a home equity loan to pay off their tax debt. The IRS will allow the Subordination as long as the proceeds of the loan are paid to the IRS up to the value of the Tax Lien – or if they can reasonably expect that doing so will increase the amount that they would eventually collect.

This procedure, though it is quite common, is sometimes difficult to achieve without help from a professional. So call us today, we can temporarily lift the lien and allow you to refinance or sell. Or we can work towards settling your tax debt for much less than you owe (if you qualify) therefore getting that tax burden out of your life a great deal faster than you dealing with it yourselfwww.taxrelief.911.com