Federal Tax Lien

One of the many downsides to not paying your taxes is having a federal tax lien placed on you. In other words, the federal government makes a legal claim against your property. This happens when you neglect or fail to pay your tax debt. Fortunately, there are tax resolution services available from the top tax relief firm FinishLine Tax Solutions. With a federal tax lien, the government can claim access to real estate, personal property, and financial assets. But, when will the federal government place a tax lien on your account? First, the IRS will assess how much you owe. Then, the IRS will send you a bill explaining how much you owe. This is also called a Notice and Demand for Payment. Consequently, If you neglect or refuse to fully pay the debt in time, a federal tax lien will be your problem.

What is a federal tax lien?

A federal tax lien is the government’s right to take or keep your personal property. Moreover, the government can keep this property until you take care of your unpaid federal taxes. However, before the government claims rights to your assets, they notify you first. Moreover, this notification comes in the form of a bill. In other words, the IRS will let you know how much you owe them. Additionally, the IRS will let you know when your payment is due. And, if you don’t pay on the due date, a tax lien will be placed on your account. Importantly, the best thing you can do is not ignore the IRS. In other words, as soon as you get a notice from them, contact FinishLine Tax Solutions.

When does a federal tax lien go into effect?

Typically, the IRS will notify you after the federal tax lien has already been filed. Moreover, this notice is called a Notice of Federal Tax Lien. Tax liens go into effect 10 days after the IRS sends you a demand to pay back your taxes.

How can I get a Federal Tax Lien Released?

FinishLine Tax Solutions offers several tax relief services options. These options can help you get a federal tax lien removed from your account. If you can, the best thing you can do is to satisfy your IRS tax lien debt. In other words, pay your IRS tax lien debt in full. This is the best way to get rid of an IRS tax lien. The worst way to get rid of a tax lien is to ignore the IRS. You should never ignore the IRS because trust us, they’re aggressive. However, if you cooperate, the IRS will release your tax lien within 30 days after paying the debt. Here are some additional options for getting a federal tax lien removed.

Withdrawing a Tax Lien

If the IRS files the tax lien in error, they will automatically remove the federal tax lien. Believe it or not, the IRS has been known to make errors. That’s why it’s extremely important to be in touch with a tax relief services company. As soon as you get a notice from the IRS, reach out to FinishLine Tax Solutions. We can investigate your case to let you know if your tax total is indeed correct. If it’s not, you can trust we’ll do everything we can to correct it with the IRS. And, if it turns out you can’t pay your taxes, we can help there too. Our tax resolution services are here to help everyone, from individuals to business owners.

Releasing a Federal Tax Lien

Federal tax liens will be released once you settle your tax debt. Typically, the liens will be released 30 days after you settle the tax debt. But you might be wondering – what if I can’t pay my tax debt? Fortunately, there are a number of tax resolution options offered by the IRS. For example, there’s the IRS Fresh Start Program. Under the IRS Fresh Start program, you can get a lien released if you owe less than $25,000. If you owe more than that, you can make payments to bring your balance down under the IRS Fresh Start program.

How can I prevent a federal tax lien?

It’s possible to prevent a federal tax lien before it even happens.

  • First, you can pay your taxes in full by the due date.
  • Second, you settle tax debt with a tax resolution program. For instance, you can set up an Installment Agreement. In other words, entering into a payment plan with the IRS will release a tax lien. If you are an Installment Agreement, the IRS will not file a tax lien.

Installment Agreements to release a Federal Tax Lien

There are specific requirements for Installment Agreements to release a federal tax lien.

  • First, the outstanding balance on your account must be $10,000 or less for a Guaranteed Installment Agreement.
  • Second, for a streamlined installment agreement, the balance must be $25,000 or less.
  • If you owe more than $25,000, you must consider other tax relief options. For instance, you should pay down the balance so it’s $25,000 or less. Additionally, you can apply for an Offer in Compromise to lessen your tax debt altogether.

How can a tax lien affect you?

There are many ways a tax lien can affect you. If you owe the IRS back taxes and don’t pay, you could be in danger of a tax lien. Here’s what a federal tax lien could mean for you:

  • Your credit score could plummet. Tax liens may not appear on credit reports anymore. However, the IRS can still file a public notice of the tax lien. In other words, creditors receive notification that the IRS has a right to your property. This could risk your ability to get a loan.
  • You may have trouble selling your home or refinancing it. Tax liens can come up in title searches. Also, take note if you have equity in your home and you’re trying to sell or refinance. You will likely have to use some of that money to pay taxes before you can close.

How long do I have to deal with a tax lien?

A federal tax lien can eat up a lot of your time. In order to get it all sorted out, you may have to spend hours on the phone. For that reason, working with a tax resolution services company can save you hours of time. We know what to do if you get a tax lien notice, and we’ll start working right away. If you have to work with a revenue officer, that can take up even more time. Plus, it can be daunting to deal with the IRS. Let FinishLine Tax Solutions handle it for you instead.

What if I don’t pay taxes after a tax lien?

If you don’t pay your taxes after a tax lien, the lien doesn’t go away. Likewise, your tax situation can only get worse. Instead, the IRS may issue a Notice of Intent to Levy. With a tax levy, the government proceeds with collecting the taxes you owe them. In other words, they’ll come and take what they owe. A tax lien is your chance to pay off your taxes before the IRS comes directly for you.

Are you facing a tax lien and need help? Call the experts at FinishLine Tax Solutions. We have years of helping clients with tax lien releases. In other words, we’re here to help you get back into good financial shape with the IRS.


Read Related Topics

1. Understanding Tax Liens and How They Affect Your Financial Freedom

2. How to Avoid a Tax Lien



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