You open that dreaded letter from the Internal Revenue Service and read that a Federal Tax Lien notice has been filed against you. Federal IRS Tax Liens are filed when you fail to pay your Tax debt after receiving your first Tax bill invoice. The Federal Tax Lien gives the government a claim against your current and future assets and property, yet your property is not collected or actually taken by legal authority (This is the difference between a levy and a lien). This may feel like a passive aggressive way for the IRS to collect Tax debt, but a pending lien can have serious implications. Not only will a Federal Tax Lien be a nuisance, but it WILL LIMIT how you can deal with your assets and property.
If you own your home, you’ll have to satisfy the Federal Tax Lien before you sell or refinance, yet there are options for you in order to satisfy the Tax lien. If you have equity in your property, the Federal Tax Lien can be
paid in part or in whole, depending on the equity in your property from the sale proceeds at the time of closing. If you don’t have enough equity in your home to cover the Tax debt, you may request the IRS discharge the lien to allow for completion of the sale. You or the Lender may ask the IRS to make the Federal Tax Lien secondary to the lending institution’s Lien to allow for a refinance or restructure of your mortgage.
Valiante Tax & Financial Management can help you file the appropriate form(s) with the IRS to get them to accept this option, which will enable you to sell or refinance/restructure your mortgage to pay your Tax debt.
As of April 2018, the Credit Bureaus no longer report Tax Liens, which means the Federal Tax Lien will NOT have a negative impact on you taking out a line of Credit or getting a job, but this doesn’t mean adding more debt or ignoring it is what you should do. While the Federal Tax Lien is active, you cannot sell assets or property without turning the money gained in the sale of your home over to the IRS to pay the lien. At this point, the IRS has locked in the money that you owe, and they now have control over you and your life.
Obviously, your payment of the Federal Tax debt IN-FULL is the easiest and quickest way to get the IRS to release their Tax Lien against you.
If you’re NOT able to pay your Tax Lien, then your CALL-TO-ACTION is to:
CALL Valiante Tax & Financial Management @ 714-710-3424, or
EMAIL Jason Valiante at: Jason@ValianteTFM.com
