Tax Lien Lawyer - Federal Lawyer

Tax Lien Lawyer

A tax lien is a huge escalation in the tax collection process. When the Internal Revenue Service (IRS) imposes a tax lien on your property, the effects that it can have are widespread. Worse, if the lien is not handled correctly, it can escalate further into a tax levy, where the IRS seizes your property and sells it to satisfy the overdue amount.

If the IRS has put a tax lien on your property, you need to act. There are still several options at your disposal. Choosing which one is the best for your particular interests and needs, and then executing on it, can take the legal representation of an experienced tax lien lawyer from the national law firm Oberheiden P.C.

Tax Liens are a Part of the IRS Collection Process

A tax lien is a legal claim against your property by the state or federal government that comes from failing to pay your taxes. The lien can be pressed against all of your property, including:

  • Real estate
  • Personal property, like jewelry or other valuables
  • Cars
  • Financial assets, from bank accounts to securities to cash and, if you are a business, even your accounts receivable

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It also covers future property that you acquire after the lien has been imposed, such as your income or wages.

The IRS imposes the lien by filing a public document, called a Notice of Federal Tax Lien. This alerts your creditors – like your mortgage company or bank if you own a home but are still paying off your mortgage – that the federal government now has a legally-backed interest in your property and belongings.

The imposition of a tax lien is a significant escalation in the IRS’ tax collection process. It only happens after the IRS has determined that you have unpaid tax liability, notified you of that unpaid balance by sending you a bill and a Notice and Demand for Payment, and then you failed to pay the full amount back in time.

How Tax Liens Can Affect You

If the IRS has put a tax lien on your property, it will affect you in several important ways.

First and most importantly, the lien moves the collection process forward. Once the lien gets imposed, you are at risk of having your assets seized and sold to satisfy the tax debt.

Second, the lien can affect your credit rating. Credit reporting agencies may include it on your credit report, which can tell other financial institutions that extending credit to you is a risk.

Third, your creditors will be informed of the lien. This lets them know that you have an unpaid balance due to the IRS. They will interpret this to mean that there is also a good chance that they will not get paid what they are owed, either. It is not uncommon for creditors to take whatever action they can to collect on their own debts after hearing of a tax lien against you.

Lastly, the tax lien is a public notification. It can lead to reputational harm if people learn about it.

Getting the matter handled quickly and effectively is extremely important.

You Have Options if the IRS Has Imposed a Tax Lien on You or Your Business

The only way to satisfy a tax lien is by paying the overdue amount. Once it is paid, the IRS will release its lien within 30 days. However, there are numerous other ways to reduce the impact that the lien will have on your interests, including:

  • Appealing or disputing the lien
  • Entering a settlement or installment agreement
  • Getting the IRS to withdraw the Notice of Federal Tax Lien
  • Having the lien subordinated
  • Discharging the lien from certain property

A tax lien lawyer from Oberheiden P.C. can pursue any and all of these options that are available to you.

Dispute the Lien By Demanding a Hearing or Appealing the Collection

If the IRS is putting a lien on your property, you have a right to a Collection Due Process Hearing. However, in order to invoke this right, you have to request one promptly by filing Form 12153. You also have the right to appeal actions taken in the collections process.

When you request a Collection Due Process Hearing, the IRS’ collection attempts halt while the process is pending.

The hearing can be conducted over the phone, through correspondence, or face-to-face at an IRS Appeals office. At this hearing, you will present your case as to why the lien should be lifted. If the IRS refuses to take the lien back, you can appeal their decision to court. Importantly, all of your arguments must be presented at the Collection Due Process Hearing, first, or else the judge hearing your court case will not consider them.

You can also appeal the collections process to the IRS employee’s manager. If the manager does not resolve the issue to your liking, you can appeal to the IRS Office of Appeals.

Enter a Settlement Agreement That You Can Live With

The IRS understands that you may be financially unable to pay the overdue tax amount all at once, and is often open to creating a settlement agreement that establishes an installment plan. This would allow you to pay off the outstanding tax liability over time.

Opening this discussion can be intimidating, particularly if the IRS is collecting the debt aggressively. However, these agreements are a common way to resolve a tax lien without it escalating further.

Get the IRS to Withdraw the Notice of Federal Tax Lien

You may be eligible for a withdrawal of the Notice of Federal Tax Lien. While this does not alter the underlying tax liability, it can mitigate the damage that the public notice of the lien will create. This is especially important for business owners or for people who rely heavily on their credit rating.

Subordinate the Lien

You may also be eligible for a subordination of the tax lien. This would let other creditors take priority over the IRS with regard to the property subjected to the lien. Subordinating the IRS is often required if you are subject to a tax lien but need a loan or mortgage. Most creditors will not give you credit without subordinating the IRS, first.

Get the Lien Discharged from Certain Property or Assets

You may be able to get some of your property discharged from the lien. You may be eligible to discharge some of your property or assets if, for example:

  • Your other property is sufficient to cover the amount of the lien
  • The property has no financial value
  • A third party owns the property and a deposit is paid that satisfies the lien

Put our highly experienced team on your side

Dr. Nick Oberheiden
Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd
Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester
Brian J. Kuester

Former U.S. Attorney

Amanda Marshall
Amanda Marshall

Former U.S. Attorney

Local Counsel

Joe Brown
Joe Brown

Former U.S. Attorney

Local Counsel

John W. Sellers
John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara
Linda Julin McNamara

Federal Appeals Attorney

Aaron L. Wiley
Aaron L. Wiley

Former DOJ attorney

Local Counsel

Roger Bach
Roger Bach

Former Special Agent (DOJ)

Chris Quick
Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow
Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen
Ray Yuen

Former Supervisory Special Agent (FBI)

4 FAQs About Oberheiden P.C. and Tax Liens

1. How Can I Avoid a Tax Lien?

The only way to avoid a tax lien from the IRS is to pay your taxes in full and on time. The IRS will send you a bill that lays out what it believes you owe. If you do not pay it or do not dispute the amount, the IRS will send several notices that it is overdue. Finally, it will send a formal Notice and Demand for Payment letter. If the amount is still not paid within 10 days, the IRS will initiate the collections process by securing a tax lien on your property.

2. What is the Difference Between a Tax Lien and a Tax Levy?

A tax lien secures the government’s interests in your property in order to cover an unpaid tax debt. A tax levy is the seizure of that property for it to be sold so that the proceeds of the sale can be used to cover that unpaid tax debt.

While tax liens and tax levies are different, they are both a part of the tax collections process. Tax liens can lead to tax levies if the lien is not dealt with. On the other hand, property cannot legally be levied by the IRS if there is no lien attached to it. For example, if you manage to get a tax lien discharged from your car, the IRS cannot seize and sell your vehicle to cover the unpaid tax obligation.

3. What Happens if I Do Not Act on a Tax Lien?

If the IRS imposes a tax lien on your property and you do not act, the tax collections process will continue. The IRS will eventually come and take some of your property or assets and use them to satisfy the unpaid tax obligation.

It can be intimidating to deal with the IRS. The agency’s customer service division is notoriously bad and many people feel like disputing anything with the IRS is pointless. However, ignoring its collections efforts will only make them escalate and get worse.

4. Why Doesn’t Oberheiden P.C. Call Itself the Best Tax Lien Law Firm?

We don’t call ourselves the best because saying things like that about ourselves does not mean very much. We prefer to let potential clients read the testimonials that our prior clients have left about the legal services that we have provided for them.


Call the Tax Lien Lawyers at Oberheiden P.C.

If you do not resolve a tax lien or continue to ignore it, the IRS will move forward in their collections actions. This often involves seizing property subject to the lien and selling it to cover the unpaid tax liability. If the liability is substantial, the property that can be seized by the IRS and sold can be significant. It can even include your house.

Resolving or challenging the tax lien before it can escalate further is essential. Call the tax lien lawyers at Oberheiden P.C. at (888) 680-1745 or contact them online today.

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