Miami IRS Lien Attorney
The IRS has a number of different ways of collecting payments owed to them by taxpayers. One of these methods involves issuing a lien, or a legal claim against a taxpayer’s property in order to secure payment of a debt. Liens can attach not only to personal assets, but also to business property and can limit a person’s ability to obtain credit. Liens can even continue after a person files for bankruptcy. Fortunately, there are a variety of ways to discharge a lien or avoid it altogether, so if you were recently notified of a lien on your property or you owe a tax debt to the IRS, you should call an experienced Miami IRS lien attorney who can evaluate your claim and advise you accordingly.
The Process of Issuing a Tax Lien
Tax liens are legal claims issued by the government against a person’s property when he or she fails to pay a tax debt and essentially protect the government’s interest in that asset, whether it be real estate, personal property, or a financial asset. Typically, federal tax liens go into effect when the IRS assesses a tax against a person and sends a bill that a taxpayer neglects to fully pay on time. The IRS will then file a public document, known as a Notice of Federal Tax Lien, to alert creditors that the federal government has a legal right to the asset in question. Once a taxpayer receives this notice, he or she can file an official appeal.
Discharging a Lien
Although paying a tax debt in full is the best way to get rid of a lien, there are other ways to reduce the impact of a lien, including through discharge, which can be achieved when:
- The value of the property is equal to at least twice the amount of the liability;
- The tax liability is partially satisfied with an amount that is no less than the value of the government’s interest in the property;
- The government’s interest is of no value because older debts are greater than the fair market or sale value of the property;
- The IRS allows the property to be sold; or
- A third party (who owns the property) provides a deposit or a bond to the IRS that is equal to the government’s interest.
Besides discharging a lien, taxpayers can also attempt subordination. Although this process
doesn’t remove the lien, it does allow other creditors to move ahead of the IRS when collecting from the taxpayer, which could make it easier to obtain a loan or mortgage. Alternatively, taxpayers can request a withdrawal, which removes the Notice of Federal Tax Lien and assures the IRS that it isn’t competing with any other creditors for the property.
Call Today for Help with Your Federal Tax Lien
Please call 386-490-9949 or send us an online message to speak with experienced Florida tax attorney Ronald Cutler, P.A. about discharging your tax lien or entering into an agreement with the IRS. Initial consultations are conducted on a one-on-one basis and offered free of charge.