When you owe money to the IRS and fail to pay, the agency can place a legal claim on your property through what’s known as a tax lien.
A lien isn’t the same as a levy, the IRS doesn’t take your property outright, but instead secures its financial interest in it. This gives the federal government first rights to the property over other lenders or creditors, ensuring the IRS gets paid before anyone else.
Removing a Tax Lien
The most effective way to clear a tax lien is by paying your full tax balance, which leads to the lien being released within 30 days.
If you’re unable to pay in full, there are alternative options, such as setting up an installment agreement with the IRS or requesting a property discharge, which transfers the lien from one asset to another.
Another approach is subordination, which allows other creditors to take priority over the IRS in terms of lien position. This may help you refinance or obtain a new loan to pay off your tax obligation more easily.
Get Assistance
Book a free consultation with one of our tax professionals to start resolving your past-due taxes today.
