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Tax Lien Attorney

A tax lien is a legal claim on your assets due to taxes that can cast a long-lasting shadow on your financial well-being. Once the IRS files a tax lien, it becomes a public record and remains on your credit report for up to seven years, making it challenging to secure credit or loans. Fortunately, the expertise of a Tax Lien Attorney like the ones at Abraham & Rose can help you navigate this complex issue. With their guidance, you can resolve a tax lien by paying off your tax debt in full or negotiating with the IRS for a suitable payment plan or offer in compromise.So, let’s start learning about how a Tax Lien Attorney can make your life easier.

Who is A Tax Lien Attorney?

A Tax Lien Attorney is a legal professional who handles tax-related issues and protects individuals or businesses facing tax liens. When the IRS files a tax lien, it can severely impact a person’s financial standing.

The role of a Tax Lien Attorney is to advocate for their clients, providing expert guidance in resolving tax liens effectively. They possess in-depth knowledge of tax laws, regulations, and negotiation techniques, allowing them to devise specific strategies to address the circumstances of each case.

What Can The IRS Tax Lien Do?

If you fail to pay your federal taxes and don’t take steps toward repayment, the IRS can place a lien on your property. This includes your home, vehicle, and even bank accounts.

An IRS tax lien is higher than all other creditors’ claims. This priority status means that the IRS will be the first in line to receive any proceeds from the sale of your assets. The lien makes selling your assets or obtaining credit challenging, further restricting your financial flexibility.

In the past, a tax lien could damage your credit score as it showed up on your credit report. This inclusion could even prevent taxpayers from selling or refinancing any assets to which liens have been attached.

However, since 2018, the three major credit reporting agencies have stopped including tax liens on credit reports.

How Does The IRS Tax Lien Process Works?

The IRS follows a detailed approach to issuing a Tax Lien. It starts by checking if the individual has unpaid taxes, filing the NTFL, and notification of the NTFL filing.

Here’s a step-by-step explanation of the whole procedure.

Initial Conditions Leading to a Tax Lien

The process of an IRS Tax Lien initiates when specific conditions align. Initially, the IRS checks whether the taxpayer has some unpaid taxes.

Once checked, the IRS sends a notice to demand payment, indicating that the taxpayer must settle the stated tax amount. The final condition occurs if the taxpayers do not pay the taxes owed in full within ten days after the IRS notifies them of this tax liability.

Filing of Notice of Federal Tax Lien (NTFL)

After taking the mentioned steps, the IRS files a Notice of Federal Tax Lien. This document encompasses the amount of taxes owed and additional charges such as interest and penalties incurred due to non-payment or late payment.

The NTFL is filed with local county authorities, specifically the recorder of deeds or the Secretary of State, making it a part of the public record.

Impact of the NTFL

The NTFL has significant implications for the taxpayer. Once filed, it applies not just to your present assets but also to any future assets you may acquire.

Essentially, the NTFL puts your creditors on notice that the IRS has a legal claim to your current and prospective assets until your tax liability is settled. This can badly impact your financial standing, presenting challenges in obtaining future credit or loans.

When faced with a tax lien, it may seem like a huge hurdle.

But fear not; there are several solutions to get out of this problem. Here are three practical methods for tackling a tax lien.

Getting Out Of A Tax Lien:

When faced with a tax lien, it may seem like a huge hurdle.

But fear not; there are several solutions to get out of this problem. Here are three practical methods for tackling a tax lien.

Setting Up a Payment Plan:

The simplest way to escape a tax lien is to clear the tax debt. But, if you cannot pay all at once, the IRS also has other options.

They may agree to release the tax lien if you commit to a monthly payment plan. The payments will be automatically withdrawn from your account until the debt is fully paid. This plan lets you pay off your tax debt in manageable chunks, reducing financial stress.

Property Discharge:

In some cases, the taxpayer might be able to get a particular property discharged, which means removing it from the lien. This option isn’t available to everyone and every property.

Taxpayers can refer to IRS Publication 783 for detailed property discharge rules.

Subordination and Withdrawal of Notice:

The final two ways, Subordination and Withdrawal of Notice, are similar. These methods can offer a halt while you organize your finances and work towards resolving the tax debt.

Subordination doesn’t eliminate the lien but can make getting another loan or mortgage simpler. To apply for subordination, taxpayers need to fill out IRS Form 14134.

Another process, known as Withdrawal of notice, takes away the public notice of a federal tax lien. Even though you’re still responsible for the debt, the IRS won’t compete with other creditors for your property under this scenario.

To apply for Withdrawal of notices, Taxpayers need to fill out IRS Form 12277.

How Does A Tax Lien Affect You?

An IRS tax lien can have serious implications for individuals and businesses alike. This legal claim by the Internal Revenue Service against your assets can create several disadvantages that may significantly affect your financial situation.

Here are three ways a tax lien can negatively impact you:

Asset Encumbrance:

When the IRS places a tax lien, it attaches to all your present assets, including real estate, securities, vehicles, and any future assets acquired during the lien’s duration. This means you may not be able to sell or transfer ownership of these assets without first satisfying the outstanding tax debt.

Impaired Credit Standing:

Once the IRS files a Notice of Federal Tax Lien, it becomes a public record and can significantly impact your credit score. Your creditworthiness may decline, making securing loans, mortgages, or credit cards challenging. A lower credit rating can lead to higher interest rates or outright denials on credit applications, affecting your financial opportunities.

Business Operations Affected:

If you’re a business owner, an IRS tax lien can have severe consequences for your company. The lien attaches not only to your business property but also to all rights to business property, including accounts receivable.

Hire Tax Lien Attorney From Abraham & Rose:

Instead of getting confused and worried over the Tax Lien, try handing over the case to Abraham & Rose and see how we change the whole situation making it in your favor.

At Abraham & Rose, many experienced professionals will guide you throughout the process. We analyze our client’s case, gather the documentation, attend the necessary meetings with IRS agents on the client’s behalf and ensure the best possible outcome.

So, wait no more and contact us at 248-539-5040 to get your case solved immediately.

Contact Abraham & Rose P.L.C. For A Free Initial Consultation

Contact our attorneys for a free initial consultation. Unlike other tax advisors, our firm prides itself on its ability to furnish direct contact between attorney and client throughout the entire process.

Frequently Asked Questions

If you’ve paid off your tax debt or met certain conditions, you can request the IRS to withdraw the Notice of Federal Tax Lien. Once withdrawn, you can then request the credit bureaus to remove the lien from your credit report.

You can appeal the filing of an IRS tax lien under certain circumstances. For instance, if the IRS didn’t follow proper procedures or if you’ve entered into a payment plan, you may be able to request a lien withdrawal.

While an IRS tax lien itself may not directly impact your employment prospects, some employers conduct credit checks as part of their hiring process. A negative credit report due to a tax lien could affect your chances of securing certain jobs.

If taxing authorities are complicating your life, please give us a call at 248-539-5040.

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