Outstanding Tax Lien Law

Outstanding Tax Lien legal Issues

Outstanding Tax Lien Law:

The federal government can put a tax lien on a person's property if that person fails to pay real property taxes, personal property taxes or income taxes. The lien is imposed so that the IRS can recover the debt owed to them. An outstanding tax lien does not mean the government can force a person to sell their property, however if the person tries to sell the property while the lien is in place, the proceeds from the sale will go directly to the IRS.

Any taxpayer that owes an outstanding tax debt of $5,000 or more is subject to an outstanding tax lien. The IRS will first attempt to collect the debt from the delinquent taxpayer before filing the lien. Once the outstanding tax lien is filed, it will become public record that the taxpayer owes an outstanding debt to the IRS, notifying all creditors that the government has legal rights to that taxpayer's property.

Outstanding Tax Lien Legal Issues:

An outstanding tax lien can stay on a taxpayer's record for at least 7 years, significantly harming their credit. An outstanding tax lien can make selling one's home or other property complicated, as the proceeds from any such sale would go directly towards the taxpayer's debt. The lien will attach to all assets owned, including business properties. It can make it extremely difficult for the taxpayer to qualify for any credit or refinance in the future.

What a Tax Lawyer can do for you:

There are ways a tax attorney can help you if an outstanding tax lien has been filed against your property. If you are danger of having an outstanding tax lien filed, an option is to sell your home or other property/assets before the lien is filed. If this is not possible, or if the lien has already been filed, there are still ways that a qualified tax attorney can assist you overcome the difficulties associated with an outstanding tax lien.

If you can pay the tax debt in full, you can then ask for the outstanding tax lien to be withdrawn so that it is removed from your record. With the help of an attorney, you may also be able to set up a plan for payment installations with the IRS so the tax lien can be removed. If your property is worth more than the amount of your tax debt, another option is to sell the property and allow the proceeds to cover your debt, thus releasing the outstanding tax lien. You may also be able to refinance and use the resulting equity to pay for your tax debt. Navigating any of these options can be complex with the various paperwork, regulations, and difficulties put in place by the IRS due to an outstanding tax lien. Seeking the council of a tax attorney may be your best option to eliminate your lien.

Lawyer Referral Service:

If you need the help of a professional tax attorney to deal with an outstanding tax lien, we can help you. Call Attorney Search Network and we can help you locate a general tax lawyer in your area.

If you have any questions about the information provided above, please contact us. Call us toll free at (800) 215-1190 or fill out our online form for your Tax lawyer referral.


If you have any questions about the information provided above, please contact Attorney Search Network.

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