Tax Problems

Property Liens

The most common form of voluntary property liens are mortgages; homeowners allow a lien to be placed on their property to receive a mortgage loan. Consequently, the mortgage must then be paid or repercussions (foreclosure, seizure of property, etc.) can occur. An IRS property lien is a public record denoting you owe the IRS back tax money. The property is used as collateral in order for the creditor to acquire the balance owed. With goals to collect the withstanding debt, a creditor may foreclose or seize the property. Selling a property with an IRS lien is also a challenge due to the unclear title of the property. The clear title is restored once the debt is paid.

A tax attorney can assist in handling and resolving IRS filed liens. Other options are available if the property lien cannot be paid off in full. Arrangements can often be made to pay off the lien through payment plans, or an Installment Agreement, with the IRS in which the debt is gradually paid back. The IRS may also lift the lien if by doing so the debt will be paid. This option, known as Lien Subordination, typically occurs in financing the property. Debtors may qualify for an Offer in Compromise with the IRS if the amount owed is realistically unaffordable and a reasonable offer is made. A tax attorney can negotiate a low payment plan or offer to resolve the property lien as well as provide other options.

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