Tax Lien and Lien Releases

If you owe unpaid taxes, the IRS may place a tax lien on your property in order to secure payment.  A tax lien is the government's claim to your property.  Once a notice of federal tax lien is filed, it attaches to just about everything you own. 

Let Koontz & Associates, PL help you as soon as you receive notification of a tax lien! 

The IRS will impose a tax lien when there are unpaid taxes and you have failed to pay or take action within 21 days of when the IRS sent formal notification.  The IRS states that they may file a notice of federal tax lien after the following three steps:

  • The IRS assessed a tax liability
  • The IRS sent a notice to demand payment of the tax liability
  • You did not pay the debt in full within 10 days after you were notified

Once the IRS takes these three steps they can file a notice of federal tax lien. A lien will then be placed on your property for the amount of tax owed plus interest and penalties.  The federal tax lien will attach to real property, tangible and intangible property owned by the taxpayer.  Once the lien is filed, it attaches to any asset you currently have and any assets you acquire in the future.

Tax lien notices are recorded in public records and therefore are picked up by all the major credit reporting agencies.  In essence, a federal IRS lien may severely and negatively impact your credit rating and will make it extremely difficult to purchase a home, buy a car, get a new credit card, or sign a lease. 

It is possible to gain a Tax Lien Release.  In order to release a tax lien you will need to obtain a Certificate of Release of Lien from the IRS. 

There are a five common ways the IRS will release or withdraw a tax lien.  Once satisfied, the IRS will have 30 days to release the tax lien. 

  1. Taxes are Paid in Full
  2. A Direct Debit Installment Agreement was Signed
  3. Taxes were settled with an Offer in Compromise
  4. Statute of Limitations Expired with the Lien Non-enforceable
  5. IRS Accepted a Bond Guaranteeing Payment

Immediately upon receipt of a Notice of Intent to Lien or Lien filing from the Internal Revenue Service, contact a tax professional to discuss your best options.

Jo Ann Koontz

[email protected] 941-225-2615