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IRS Liens

tax lien

You Must Pay Your IRS Debts Yearly

It is important to file tax returns every year and if a debt is owed, to pay it in a timely manner. If the debt cannot be paid in full right away, then an installment plan should be set up, allowing for smaller payments over time. Taxpayers and organizations who have unpaid taxes, risk having a lien placed on their property (real estate or other property).

What is a Tax Lien?

First, let’s define a lien. A lien is a document filed by the IRS that lays claim to property in order to recoup funds owed the government. A tax lien is a matter of public record and shows up on credit reports. Liens and levies are not the same thing. A levy is the act of the government acting on their claim or lien and seizing the property.

Avoiding Tax Liens

If the IRS has placed a lien on a home or other property (including personal items) you own, that lien must be satisfied before you can refinance or sell the property/home. If you do wish to sell, any equity accrued can be used to pay the lien and remove you from underneath that burden. But even better is to avoid having the lien placed altogether. As stated in the first paragraph, on-time tax return filing and payments can prevent liens.

Call Our Orlando Office at (407) 382-6658 to Schedule Your Initial Consultation

A Possible Error

If a lien has already been placed, the taxpayer will receive a notice from the IRS. There are ways to have a lien removed. The first is in the rare case that the lien was filed in error. If you received a notice of a lien that you believe was filed in error, you should contact CPA Accounting and Tax Services right away. We will work with you to resolve this with the IRS.

Getting a Tax Lien Removed

A lien can also be removed if the outstanding balance is paid in full. To remove the lien, taxpayers may consider borrowing money or selling an asset to settle this debt. Then, the lien will be released, meaning that the lien no longer exists against your property.

Another way that a lien can be removed is if the debt is satisfied in another way, besides being paid in full (i.e. Offer in
Compromise- read our full article on this under the Services tab at the top of this website.

Statue of Limitations and the IRS

Finally, if a lien has not been resolved in ten years, the IRS will typically consider it unenforceable. There are exceptions to this statute of limitations, so we advise against trying to wait it out. Call us at 407-382-6658 to begin working toward clearing your lien today.

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Call Our Orlando Office at (407) 382-6658 to Schedule Your Initial Consultation