If you owe any federal or state taxes and cannot or refuse to pay, the IRS and state tax agencies may place a lien on your property to collect the money you owe. Liens can ruin your business, get in the way of selling your home or obtaining loans.
Take immediate action against a lien and protect your assets with Wiggam Law’s tax lien lawyers.
What is a tax lien?
A lien is a legal claim to your property—including personal and business assets, real estate properties, investments and retirement funds, or bank accounts. A lien allows the IRS or your state’s Department of Revenue to assert legal ownership of that property, limiting your ability to use it for yourself, your family, or your business. In a worst-case scenario, a tax lien may lead to a levy, in which your property is sold to satisfy your debts.
Having a tax lien placed on your property can lead to:
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- Difficulty selling or refinancing real estate property or vehicles
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- Restricted access to new lines of credit, mortgages, or loans
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- Damage to your business or personal reputation
Tax Liens: The Faster You Act, the Better
Some agencies, like the Georgia Department of Revenue, provide advance notice that they intend to file a lien along with an opportunity to appeal it. Others, like the IRS, file and record the lien first and then send you a notice affording you rights to appeal it. Either way, it’s critical to try to avoid tax liens and to take quick action to resolve your situation.
Your options for getting tax lien relief include:
Paying Your Tax Bill in Full
If a lien is placed on any of your assets, paying your entire tax bill in one lump sum payment automatically clears your lien and gets you back in good standing.
Agreeing to a Payment Plan
If you agree to an installment-based plan, any further collection efforts will be paused while you pay. The lien may not be lifted until you’ve completely paid what you owe.
Requesting a Lien Subordination
If you need to take out a loan or line of credit with your property as collateral to pay off your tax debt, the IRS or DOR can de-prioritize your lien to help you get relief.
Applying for a Lien Discharge
If you want to sell an asset to pay off your tax debt, but the asset is under lien, you can work out an agreement to have that asset released from the lien.
Appealing Your Tax Lien
After receiving a Notice of Federal Tax Lien Filing, you have the right to a Collection Due Process hearing to appeal the lien’s validity or request its removal.
Requesting a Lien Release and Withdrawal
A lien is released when your debt is paid or settled. You may also be eligible to request for your lien to be withdrawn, which removes it from public records.
Find out how a tax lien attorney can help you resolve your situation.
Find out how a tax lien attorney can help you resolve your situation.
Wiggam Law’s Tax Lien Relief Services
With vast tax law expertise and an unwavering commitment to compassionate service, we are your first and last line of defense against tax liens. Our tax lien lawyers are ready and willing to zealously advocate for you and provide the IRS lien help you deserve.
Tax Lien Removal & Discharge Assistance
See if you qualify for lien removal and get expert assistance applying for a lien discharge through relevant IRS or state programs.
Wage Garnishment & Bank Levy Protection
Take steps against the tax lien on your property and assets to prevent it from turning into a bank levy, your wages being garnished, or other forced collection actions.
Installment Agreements & Payment Plans
Minimize your risks of a lien filing or your tax liens progressing to bank levies with installment-driven payment plans for your tax liabilities.
Lien Subordination & Withdrawal
Find solutions to allow for financial flexibility and protect yourself from undue hardship while resolving your tax liabilities.
Offer in Compromise
Shorten your path to resolving your tax liabilities with federal and state tax programs that allow you to pay less than you owe.
IRS & State Tax Representation
Don’t face the IRS alone. Wiggam Law will represent you on your behalf and present the best case possible to resolve your situation.
You don’t need to face the IRS alone.
Tax lien issues can be difficult to resolve on your own. That’s where Wiggam Law comes in. If your tax debt is more than you can pay or you don’t know where to start, our experienced, compassionate attorneys guide you to the best possible outcome.
We find clean solutions to messy tax problems and help you take back control of your life.
Tax Lien Relief FAQ
What assets can tax liens be placed on?
The IRS or state taxing agencies can place a lien on real estate, vehicles, business assets, bank accounts, retirement accounts, or investments. Any property you acquire while you have a lien on your assets will also be placed under the lien.
Can liens be discharged in bankruptcy?
Tax liens remain in place until you pay your debt or the IRS agrees to remove it. If you decide to file for bankruptcy, your tax lien will remain attached to any property exempted from the bankruptcy. You must negotiate release of the lien with the IRS bankruptcy unit. A lien may also pass to your estate if you pass away without resolving your tax liabilities.
What is the difference between a lien and a levy?
A lien is a legal claim against property to secure payment of the tax debt. While this gives the IRS the rights to seize and sell your property to pay off your debt, the IRS does not immediately sell properties under a lien. A levy is the document the IRS issues when they want to garnish wages or seize a bank account or other property, even including your home, to pay a tax debt.
When can a lien on my property be released?
A tax lien can be released if:
- You pay your tax deficit in full.
- You enter into a certain type of installment agreement with the IRS.
- You enter into an Offer in Compromise and pay the offer in full.
- The IRS decides that releasing your lien is in the government’s best interest.
Once paid in full, the IRS releases your lien within 30 days.
Can I appeal an IRS tax lien?
You have the right to appeal your lien. Within five days of receiving the lien notice, you should get a letter informing you of your right to a Collection Due Process hearing. In this hearing, you or a tax attorney representing you can appeal the lien’s validity or request its removal. Liens can also be appealed more quickly if you file a CAP (Collection Appeals Program) appeal within 30 days of receiving notice.
Does a tax lien affect your credit?
Tax liens are not reported to credit bureaus and will not show up on credit reports or affect your credit score. However, they are public information, so they can show up on background checks for employment and impact your ability to obtain financing.
How do you request that certain assets be excluded from a lien?
If you need to sell or use an asset as collateral to satisfy your tax debt, you can submit an IRS Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien, to request that the IRS discharges the lien from the asset in question.
How does a tax lien affect me?
A tax lien is a legal claim to your assets and can impact your ability to sell property, obtain credit, and even affect your business. It also remains attached to your property and can limit your financial flexibility. Liens can also make it very difficult to sell your home.
When do my IRS tax liens drop off?
A tax lien remains in place until the debt is paid or the IRS agrees to remove it. In some cases, a tax lien may also persist after bankruptcy or even after death, transferring the responsibility to your estate or heirs.
Once paid in full, the IRS releases the lien within 30 days.
What happens when the IRS places a lien on your property?
When a lien is placed on your property, it cannot be sold until the IRS is paid or the lien is removed. Until the lien is released, it can attach to any newly acquired property.
A lien can affect you in four main areas:
- Assets
A lien links to all of your assets, including property, vehicles, and existing financial assets like your 401(k). This also includes future assets you obtain during the lien process. - Credit
A lien lets creditors know that the IRS has a legal right to your property, which will affect your ability to acquire credit. - Business
A lien is also connected to your business property. - Bankruptcy
If you decide to file for bankruptcy, the lien, as well as any tax deficit may continue after bankruptcy.
The IRS is required to send a notice at least 30 days prior to filing a lien. This allows you time to pay the amount due or enter into a payment agreement with the IRS.
If you still refuse or neglect to pay the taxes owed, the IRS files a public document, the Notice of Federal Tax Lien.
Still have questions about tax liens?
We have all the answers.