Tax Lien

If the IRS has made a notice and demand for payment of back taxes and you have failed to respond, a lien will automatically arise in favor of the federal government. A tax lien gives the IRS a legal claim to your property and is a way for the IRS to ensure that they will collect the back taxes that you owe. Most commonly, it attaches to real property, and so in the event of a sale, the proceeds from the sale will first go to pay off the tax lien. The IRS will typically issue and file a Notice of Federal Tax Lien, informing you that a lien has been filed as well as informing you of your right to a Collection Due Process (CDP) hearing. A tax lien makes it extremely difficult to sell property that you own or to secure loans or lines of credits with banks or other financial institutions. It could also potentially negatively affect your business if you need to secure loans to make equipment purchases or to help capitalize the cost of business operations. We can work with the IRS and state taxing agency to either avoid the filing of a lien or to limit the economic impact of a lien. If the IRS is being overly aggressive and uncooperative, we can also demand a CDP hearing.

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