Tax Liens

Tax Liens

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.  The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.  The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after the IRS:

  • Assesses your liability
  • Sends you a bill that explains how much you owe
  • You neglect or refuse to fully pay the debt in time

Frequently Asked Questions About Tax Liens

How will I know if a tax lien has been placed on my property?

Prior to a tax lien being placed on your property, the IRS must first asses a taxpayer with what is called a liability and demand payment. If the taxpayer does not make a payment within 10 days of the demand, the IRS has the ability to send out a notice of a federal tax lien. In order to notify you of this tax lien a letter will be sent to you in the mail, and they may also try to contact you by phone. 

How will a tax lien affect me?

Once the IRS has filed a tax lien against your property, the tax lien becomes public and the IRS will have an official claim to . your property. This makes it difficult to borrow money in the future. While a tax lien may not show up on your personal credit report, it can show up on other consumer and business reports. 

What property is subjected to a tax lien?

A federal tax lien covers all property a taxpayer ownes plus any future property they obtain.

Can a tax lien be released?

Yes, a federal tax lien can be released. In order for the tax lien to be released a person much get back into compliance with their taxes in order for the lien to be released. You can either pay in full or enter into an offer in compromise. 

Why did the IRS file a tax lien on my property?

The most common reason why the IRS will file a tax lein is because of unpaid income taxes. A tax lien will generally be filed if a person owes more than $10,000 to the IRS.

How can I schedule a consultation with Strategic Tax Resolution?

To schedule a consultation with Strategic Tax Resolution please contact us via our main office line (216) 260-1000 or by visiting our contact us page.