What is a federal tax lien?
We get asked this question a lot.
We’ve all heard of liens before such as property tax liens–if someone fails to pay their property taxes to the county or to the city or to the school board. We’ve heard of mechanics liens–if somebody fails to pay the carpenter or the HVAC guy or the plumber or electrician that comes to work on their home and that bill goes unpaid, they have the right to file a mechanics lien against the property.
However, federal tax liens are a lot different.
First off, a federal tax lien can arise even though nothing has been filed at the county level. It’s called an invisible lien. So basically, after the IRS has assessed that there is an amount due, an amount of tax due from a taxpayer, and they have sent that taxpayer some type of correspondence outlining that amount due, they have what’s called an invisible lien.
Yes, only the IRS and tax code could come up with the name invisible lien, but it is true.
So what is this invisible lien?
It’s really the government’s legal claim against your property or against the property of the taxpayer. It occurs when they fail and neglect to pay that tax.
What does this have to do with the filing of a NOTICE OF FEDERAL TAX LIEN?
The lien really becomes an issue though when the IRS takes that lien and they file a notice of it, a NOTICE OF FEDERAL TAX LIEN. This is what becomes public record at the courthouse. They file this with the courthouse and it really affects a taxpayer–especially one trying to either buy or sell property. It really can be a showstopper if it’s still in existence when the property goes to closing. That’s when it really pops up. If they’re trying to buy property, there’s not too many banks that want to loan money to somebody that has a federal tax lien on their record.
The filing of a NOTICE OF FEDERAL TAX LIEN can be a sign of future IRS collections activities to come. It opens the door for the IRS to start collections enforcement actions such as levies, seizures, and garnishments of financial accounts and paycheck.
If the IRS has filed a NOTICE OF FEDERAL TAX LIEN on your social security number, you need to give us a call immediately at (833) IRS-PROB.
Best regards,
Randy
P.S. If you or someone you love finds themselves in a difficult situation with the IRS, let’s talk. The time investment will take approx. 30 minutes, but the security of knowing what can be done and when it needs to be done is priceless. Just click the link below to set up a time or call us at (833) IRS-PROB or (214) 214-3000.
https://calendly.com/irsprob_randy/roadmap-to-tax-relief-with-randy-zoom
