If you owe the IRS and haven’t paid, the agency can gain legal right to your property by issuing what is called a tax lien. This is not the same as a levy, in which the IRS can actually seize your property, but is rather a way to secure interest in the property and establish that the federal government has the primary claim to it. This way, the IRS ensures that it gets paid before other creditors and lenders.
Getting Rid of Tax Liens
If possible, the best way to get rid of a tax lien is to pay the full balance of your tax debt, causing your lien to be discharged in 30 days. But if you can’t pay the full amount, there are other options, like negotiating an installment agreement with the IRS or discharging the property with the lien, which moves the lien from one property to another. A third option is subordination, which allows other creditors to move ahead of the IRS in priority in terms of security interest, possibly letting you refinance or secure a new loan and pay off your tax debt.
How Tax Pros Can Help
Dealing with a tax lien can be an overwhelming experience. Let TaxAdvocates help connect you with a highly qualified tax professional who can help you navigate the process and make the best decision for your specific situation.