Federal Tax Liens On Your Property

Debt Relief Attorneys & Tax Lawyers in Cerritos

It might seem like something out of the Gold Rush era but parties can actually stake a claim against your property to this day. In particular, the federal government can lord itself over your property if you fall into tax debt by applying what is known as a federal tax lien. This sort of lien raises a flag to creditors and sometimes the public that states you no longer have legal right to your property.

Clearing your property of a federal tax lien should be a priority the moment it is applied. If you do not take the proper steps to be rid of a lien, there could be serious consequences.

A federal tax lien may damage your wellbeing by harming your:

  • Credit: Your credit score could take a significant hit if a federal tax lien exists on your property. Obtaining new credit may be completely impossible as well.
  • Business: Any property and rights attached to your business will be affected by the lien as well; even your accounts receivable can be under the lien’s shadow.
  • Bankruptcy: A successful bankruptcy filing can alleviate a great deal of financial issues but not a federal tax lien. Once your bankruptcy is resolved, the tax lien will likely reinstate and sink you back into the same troubles.
  • Possessions: In a worst case scenario, if you cannot pay your tax debt, the lien will turn into a levy and the Internal Revenue Service (IRS) can seize your real and personal property.

What can you do to avoid the penalties of a federal tax lien? Your first step should be to contact our Cerritos debt relief attorneys from RJB Law Offices. With a decade’s worth of experience and a backing of numerous appreciative client testimonials, you can rely on us to help you through this confusing time.

Lifting a Federal Tax Lien

Knowing the potential consequences of an unaddressed federal tax lien, you surely see the importance of lifting or dispelling it. When you get a free consultation with our Cerritos tax resolution attorneys, we can analyze your financial situation to determine what path you should follow to find a workable resolution.

There are four possible options to lifting your federal tax lien:

  1. Payment: In an ideal situation, you may have had the lien placed because you simply forgot to make your tax debt payments. Pay the debt off entirely and the lien will be lifted. This is not a common solution due to the fact that most liens are placed upon people who find themselves in a financial crisis.
  2. Discharge of property: The federal tax lien will be removed from your property after an alternative agreement is met with the IRS. A debt relief lawyer from our firm can help you negotiate a discharge.
  3. Subordination: Creditors will be moved ahead of the IRS in terms of priority; this process can allow you to still receive a new loan or mortgage while the federal tax lien exists.
  4. Withdrawal: The IRS can choose to take down the public Notice of Federal Tax Lien, essentially hiding it from creditors and others. Your tax debt will not be removed in this process.

Do you think that one of these solutions could work for you? Our Cerritos debt relief lawyers certainly do. Give us a call at 888.256.8581 at your earliest convenience, ask for a complimentary case evaluation, and we can begin to explore your options to help you find peace of mind again.