Tax Liens and Levies

A Tax Lien is used by the IRS as a tool for security towards or payment for income tax owed the federal government. The filing of a tax lien serves as a public notice to your creditors that the IRS has a claim on property that is in your name, including properties acquired after the lien is filed including your house, car and bank accounts.

Releasing your Tax Lien:

IRS may issue a Withdraw or Release filing of the Notice of Federal Tax Lien under certain circumstances including some of the situations listed below:

1. Taxpayer has fully paid all taxes owed, including interest and additional fees.
2. Taxpayer has successfully negotiated and paid the lower amount of taxes by method of an Offer in Compromise.
3. IRS accepts a bond that the taxpayer submits that serves as a guarantee of payment of the debt.
4. Tax lien releases automatically10 years after a tax is assessed if certain conditions are met.
5. Taxpayer may apply for release of a tax lien by completing a Certificate of Discharge, in the event that taxpayer sells a home or other property.
6. The notice of Federal Tax Lien was filed too quickly or in violation of IRS procedures.
7. Withdrawal will allow for faster collection of the tax.
8. Withdrawal would be in the best interest of both the taxpayer and the government.
9. If the taxpayer was in bankruptcy and the IRS assessed the tax and filed the lien, even though those in bankruptcy are allowed an automatic stay.
10. IRS made an error of procedure in an assessment.
11. Taxpayer was not given the appropriate opportunity to dispute the assessed liability.

Taxpayer’s credit rating may be affected upon a lien being filed. Taxpayer may be denied a loan to buy a car or a house, the ability to sign any type of lease, or a new credit card. In order that damage to taxpayer’s credit rating is as little as possible, taxpayer needs to resolve his or her tax lien problems as soon as possible.

Xcel Law Group is well seasoned through experience and training to properly analyze and present your case to the IRS for a quick and favorable decision on the relief of tax liens and levies for you.