Insightful Readings on Federal Tax Lien

A federal tax lien is a useful legal tool by the US government that secures the claim to title, interest, and right of taxpayer assets because of non-payment of taxes. The lien is recorded at the secretary of state or county clerk's office which makes it a public document. The recording depends on the local laws of each state, so one must take note of this. The lien is made public so that it can serve as a notice on all creditors on the government's claim on the assets.

Federal tax lien is not a good item on the debtor's credit bureau report. Generally, it becomes the topmost claim against the debtor's assets. Also, it may displace the position of several firms on bank revolving credit lines and lending on accounts receivable. Though, there are other claims that may be able to surpass it such as a landlord lien or mechanic's lien. This is the reason why further research is compulsory.
A lien is the basis for the authority of the IRS to foreclose on the property of the delinquent taxpayer via seizure. This course of action should not be confused with an IRS levy because they are different to each other. Basically, the IRS can do the levy on the bank account of the taxpayer, or his wages without it. They only need a valid assessment and several legal notices served though certified mail. In some cases however, the IRS has already filed the federal tax lien first before levy.



A federal tax lien is possible to avoid by entering into an agreement for installment payment with the IRS. This can be done in most cases if it is not yet filed. However, once filed, it would not be released until the tax debt is paid by the debtor. There are also instances wherein it can be discharged, if the IRS approves and acquires proper financial consideration from a specific property. In normal situations though, the lien can be released if the debt is paid in full, IRS agrees to an offer in comprise, or the statute of limitation expires.
A debtor is always welcome to file for an appeal against the lien but must possess a good case if ever he wants to succeed. Also, if he is able to show proof that it can hinder the chances of the government getting the money, there might be a good chance of removing the lien.

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About the Author

Dustin Hahn is the top tax liens and deed consultant today that conducts trainings and mentoring to investors who want to learn the secrets behind real estate tax sales investments. He is the owner of Tax Sales Secrets, the best tax liens and deed investment company. He is the author of Real Estates Best Kept Secret, an e-book which is available at http://www.taxsalessecrets.com

Insightful Readings on Federal Tax Lien   by Dustin Hahnin Real Estate / Mortgage Financing    (submitted 2013-07-08)