IRS Tax Lien Help
The Internal Revenue Service (IRS) uses tax liens to secure an interest against the property of taxpayers who owe back taxes. The lien ensures that taxpayers meet their federal tax debt obligation. Unfortunately, liens can encumber taxpayers in a variety of ways not always anticipated by the IRS. There are, though, some avenues available to assist you with your tax lien.
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How It Works
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The IRS will file the federal tax lien and the taxpayer will receive a copy at their residence, or in the case of liens on business, at their executive office. Liens can be attached to both real and intangible property. Examples of intangible properties include copyrights, patents, and trademarks. Typically, the lien is not removed until the tax debt is paid in full, payment arrangements are made or the lien becomes unenforceable due to the expiration of the statute of limitations.
Significance
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There are processes in place to assist taxpayers who require that their lien be adjusted or removed. A Certificate of Subordination will assist taxpayers who are attempting to refinance their homes or receive a line of credit but are unable to do so because of the lien on their property. The Certificate of Subordination gives another creditor priority over the lien and position the IRS as the secondary lien holder. Taxpayers who are experiencing a hardship as a result of the issuance of the lien are encouraged to contact the Taxpayer Advocate Service (TAS) at 1-877-777-4778. In addition, you can fax IRS Form 911 and mail it to the office, which processes requests for your region (see Resources).
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Considerations
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Typically, taxpayers requesting a Certificate of Subordination will be required to show that the issuance of the subordination will make the government's collection of tax easier. For example, a taxpayer seeking subordination in order to refinance their home could provide the government a compelling reason to issue the certificate by expressing their desire to use the monies from the refinance to pay off their debt. The IRS will usually not consider a request for a Certificate of Subordination if it is possible for the taxpayer to secure a loan to payoff the tax debt.
Time Frame
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After you contact TAS, you're usually assigned a taxpayer advocate within seven days of your call. There is no set time frame for the approval or denial of the Certificate of Subordination. The Technical Service Group manager will contact you with a decision within a few weeks.
Appeals
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The IRS is required to notify you within five days of the filing of the lien and you have 30 days to request a hearing before the IRS Office of Appeals.
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References
Resources
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
