Federal Tax Liens issued by the Internal Revenue Service are employed when tax debts are not paid. These legal claims against property can affect every part of your life. Many people wonder how to determine if they have a tax lien and if these tax liens are public records. 

Here we shed some light on federal tax liens and the public’s ability to access them. 

How Can a Tax Lien Affect Me?

A federal tax lien is the United States government’s legal claim against your property when you haven’t paid a tax debt. This lien protects their interest in your property. This can include real estate, personal property like cars and homes, and your financial assets in the form of wage garnishments or levies of your bank account and retirement funds.

If you are a business owner, a federal tax lien can cover your business property, taking away your rights to business property and accounts receivables. This lien will attach to every asset and any asset acquired during the lien duration. IRS Tax liens can hinder your ability to secure credit, give up your ownership rights to business assets, and don’t lift when you declare bankruptcy. 

Federal tax liens are imposed to ensure that the Internal Revenue Service can access the amount owed if you try to sell your property. When a tax lien is in place, profits from property sales are first applied to tax debt and go straight to the IRS. You will then get whatever is leftover if anything is left after your debt is covered. 

A tax lien can significantly lower your credit score. Notices of federal liens are public, so potential creditors and all credit bureaus have access to that information. If you should try to sell your home with a tax lien attached, your lender will want you to handle that before closing. You are most likely able to pay the taxes out of your equity at the time of closing. 

Once you have ignored correspondence you have received from the IRS and failed to pay your federal taxes; a lien is one course the IRS may take. But It is possible to have a tax lien removed with help. When you find that you have a tax lien, contact the IRS Tax Relief Network to find out your options for getting the lien removed. 

Do I Have a Tax Lien?

You may wonder if you have an IRS tax lien. You may also wonder if your real estate agent or mortgage company can see this information. Yes, they can. 

Tax liens are public record. The Internal Revenue Service files a Notice of Federal Tax Lien with the Secretary of State, County Clerk, or state recorder’s office. To find tax liens, conduct an adverse lien search in the county in which your property is located. 

Your Secretary of State’s website also offers a search. Enter “lien filings” or “UCC Search” on the website, then enter the necessary information to determine if you have a tax lien. You can also call the IRS Centralized Lien Unit at 800-913-6050. 

If you’re wary about dealing with the Internal Revenue Service directly, the IRS Tax Relief Network can represent you.

What to Do If You Receive a Notification of an Federal Tax Lien

If a federal tax lien has been filed against you, you must respond and handle it quickly to avoid losing your assets. The public document Notice of Federal Tax Lien will be sent out to make you aware that a lien has been filed. 

Avoiding a Federal Tax Lien

Filing and paying taxes on time and in full is best to avoid a federal tax lien. If you cannot, you need to communicate with the IRS to make arrangements. Never ignore notices from the IRS. 

The Difference Between a Lien and a Levy

Many people think that tax liens and levies are interchangeable. But they are wrong. A tax lien is a legal claim against property in an attempt to secure payment of back taxes. A tax levy allows the Internal Revenue Service to literally seize your property to cover the debt. 

Getting Help for with Your Federal Tax Lien

There are options when it comes to addressing an IRS federal tax lien. The tax professionals at IRS Tax Relief Network are experienced in helping clients choose the best solution for their specific situation. If you are facing an IRS Federal Tax Lien, we can help you negotiate a payment arrangement or assist you in getting an Offer in Compromise. 

There are other options depending on your situation. The simplest way is to pay your tax debts in full. This is often easier said than done. The other options include:

Installment Agreement: This is usually used to stop the tax lien from being filed. It allows you to make monthly payments on your tax debt.

Offer in Compromise: You can reduce tax debt using an Offer in Compromise. If approved, the IRS will remove the tax lien when you pay the agreed-upon amount in full. 

Tax Lien Withdrawal: If a lien has been filed against the wrong taxpayer or filed in error, the IRS can review and ensure that the information is correct and if the lien has been properly filed. The Fresh Start Initiative can also help you remove the debt as long as you’ve started a direct debit installment agreement, are a qualifying taxpayer, owe $25,000 or less, pay within 60 months, and other filing duties and payment requirements are followed. 

To discuss your options more, contact the IRS Tax Relief Network for your complimentary consultation to help you get back to your life and in good standing with the Internal Revenue Service. Reach out today; experts are standing by! Our tax relief experts can help you settle your tax debt from the comfort of your home. 

Tax Liens