Questions and Answers

Question: I received a Notice of Federal Tax Lien from the IRS for unpaid taxes and I’m scared. How do I get this situation resolved?

Answer: A Notice of Federal Tax Lien is public record and is generally filed with the County Recorder. It’s a notice to all your creditors that the IRS has a secured interest in your real and personal property that you own and acquire in the future. There are 4 ways to resolve a federal tax lien – You can request a Lien Subordination, a Lien Discharge, a Lien Release, or a Withdrawal of a federal tax lien.  A federal tax lien will make it very difficult, if not impossible, for you to purchase or sell a home, vehicle, and other property on credit. It may also prevent you from accessing the equity in real property you may have built up over the years. However, the IRS has several different options that deal with resolving a NFTL.  One of these is to apply for a Withdrawal of the lien. Winning a Withdrawal of a NFTL is as if it never happened in the first place! The IRS will consider this if the Lien was filed prematurely or was not in accordance with IRS procedures.  It’s important to consult with a tax professional to see what Lien relief programs you may be eligible for before the IRS starts seizing your property.