When the IRS has failed repeatedly to collect an overdue tax debt, they will issue a tax lien on property and assets. This lien places them first in line for payment should the home, property or asset be sold, and can be a tremendous burden to overcome when trying to sell a home. The IRS still has the right to collect even if you acquire property or assets after the lien is filed.
Understand your options and receive a tax consultation today. We’ll conduct a tax analysis based on your specific situation and present available solutions for consideration.
- Analyze your IRS transcripts to determine which lien removal option is best for your situation. We'll also assess whether you qualify for any penalty abatement(s).
- Prepare the appropriate documentation (supported by IRS tax code) to accompany your IRS lien release or subordination request.
- Submit your request to the IRS and negotiate the lien removal on your behalf.
- Once approved by the IRS, we will verify the lien has been fully removed.
A. A Federal Tax Lien, authorized under Internal Revenue Code (IRC) § 6321, gives the IRS priority on your real and personal property against all other creditors, as well as the right to seize and sell such property subject to prior encumbrances. It enables the IRS to: (1) secure the tax debt, protecting the IRS’s ability to collect the unpaid tax debt; (2) make the tax lien a matter of public record, so that other current or potential creditors are put on notice; and (3) move the IRS into a priority position.
Q. Will a Notice of Federal Tax Lien show up on my credit report?
A. Under current law, a Notice of Federal Tax Lien will not appear on your credit report.
Q. How long will It take for the IRS to release my tax lien if I'm approved for removal?
A. Document gathering and application preparation time typically takes about a week, although it may be longer if our information requests are not timely answered. Once the package is submitted, the IRS is statutorily required to reach a determination on an application within 30-days. Schedule a Consultation with us to determine how we might help to remove your IRS tax lien. We do not recommend contacting the IRS on your own.
Q. What's the difference between a lien discharge and subordination?
A. A Lien Discharge (IRC § 6325(b)) means the IRS has agreed to remove the lien from your property so you can transfer the property to a new owner free of the lien. Alternatively a Lien Subordination (IRC § 6325(d)) means the IRS has agreed to give another creditor the right to be paid before the tax lien is paid. The objective is to convince the IRS to release the lien, even though it won't be fully resolved, so you can close on your property sale or re-fi.
Q. Why are IRS transcripts needed?
A. Transcripts are used to confirm (1) the validity of the lien; (2) the procedures used by the IRS to file your Notice of Federal Tax Lean (NFTL); and (3) the statute of limitations period remaining for the lien. We also use them to determine whether you may qualify for any penalty abatement.
Q. What is the cost of your IRS lien removal service?
A. We charge a flat-fee of $1250 for a Full-Pay Lien Resolution (lien fully paid off out of sales or refinance proceeds). This includes coordination of the entire lien release process, start to finish. If the lien will only be partially paid off during the sale or refinance, we charge a flat-fee of $3,500 for a Lien Discharge or Lien Subordination package submission. This includes transcript analysis, complete application package assembly (average of 75-100 pages), form preparation, IRS submission, negotiation on your behalf, and if needed, appeal (at no extra cost). Because every situation is different, we recommend you Schedule a Tax Consultation so we can discuss your case in detail.