Tax liens can really make your life miserable! When your taxes are not paid, the IRS or state taxing authorities can file a lien against your real estate and other assets. Tax liens can be filed by the taxing authorities as a means for trapping equity and/or to publicly announce a claim against assets. This gives them them the legal right to collect taxes from the sale (and/or refinance) of your assets.
Liens filed against you by the IRS or state taxing authorities also show up on your credit report and could prevent you from being able to open a checking account, secure a lien of credit, borrow against your assets or realize proceeds from their sale. At the very least, they may drop your credit score. The banks and title companies are generally forced to comply with the conditions of a federal or state tax lien and are sometimes powerless to help you.
Even if full payment of the tax liabilities can't be remitted, liens can be discharged or subordinated in cases where a tax lien is in place against real estate that needs to be sold or refinanced. In other cases when full payment of the tax liabilities can't be remitted, liens may be able to be withdrawn by the IRS. After full resolution has been brought to a tax debt, any liens filed on a liability owed should qualify for release. Releases can be obtained regardless of whether a liability expired, was relieved or forgiven, was paid through a settlement, was discharged in bankruptcy, was paid off net of penalty abatement, or was actually paid off in full.
If you need help securing a discharge, subordination, withdrawal, or release of tax lien, contact our office for help.
After the work of resolving a tax problem is complete, all tax lien releases are typically secured and then credit repair services can be performed. The IRS does not directly report lien releases to the major credit reporting agencies. It is generally in one's best interest to expedite the process of the lien release being reflected on the credit report(s) by contacting each of the major credit reporting agencies and providing copies of all lien releases immediately after they are obtained.
In addition to getting the credit reporting agencies to reflect lien releases that have been filed, we can also help you with other problems that may exist on your credit history. If you need help re-establishing your credit rating, please contact us for assistance in getting your credit reports corrected and raising your score! If you need help repairing your credit, contact our office for help.