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Three options for dealing with troublesome tax liens

Now that the holiday season is in full swing, few people are considering their options for “refund season,” which unofficially starts about the third week of January when employers begin handing out w-4 notices. Indeed, most people understand that the interest and penalties will be in store for those who do not pay their taxes. But what may not be known is the possibility that the IRS will guarantee its interest in collecting taxes through a tax lien.

 Essentially, a lien can hamper one’s ability to sell property or secure credit. In fact, the government could foreclose on its lien and actually claim property.

As such, this post will highlight a few options for dealing with a tax lien

Apply for a subordination certificate – IRS liens have priority over other liens or mortgages on a property. However, the IRS could agree to be placed in a different position, especially if its lien will be substantially satisfied.

Seek a property discharge – Under unique and limited instances,  property may be sold without the tax lien being applied before the proceeds are distributed. Naturally, this can be very helpful in situations where a taxpayer is trying to unload an albatross property.

Ask for the lien notice to be withdrawn – Of course, the most effective way to deal with a lien is to have it extinguished. This is where an experienced tax law attorney can help. A skilled lawyer can find if the IRS made mistakes or took improper steps in securing the lien.

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Law Offices of Charles R. Frazier
5258 Murfreesboro Road #B
La Vergne, TN 37086

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