{"id":124210,"date":"2024-04-08t17:51:11","date_gmt":"2024-04-08t21:51:11","guid":{"rendered":"\/\/www.g005e.com\/?p=124210"},"modified":"2024-08-29t23:53:30","modified_gmt":"2024-08-30t03:53:30","slug":"four-ways-to-handle-federal-tax-liens","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/04\/08\/four-ways-to-handle-federal-tax-liens\/","title":{"rendered":"four ways to handle federal tax liens"},"content":{"rendered":"

\"\"<\/strong><\/p>\n

there\u2019s more than one route to satisfying the irs collection division.<\/strong><\/p>\n

by eric l. green<\/em><\/p>\n

irs tax liens can have a profound impact on an individual\u2019s situation, affecting their ability to get loans, sell property or engage in business activities. as such, it is crucial for individuals to understand how irs tax liens work and the options available for getting rid of them.<\/p>\n

more:<\/strong> the irs is coming! get your clients into compliance<\/a> | tax chat: eric green reveals the tax rep guide to tax season<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

in this article we discuss approaches and factors to consider when dealing with irs tax liens, offering insights and advice to help taxpayers navigate this process.<\/p>\n

understanding irs tax liens<\/strong><\/p>\n

before discussing ways to remove tax liens, it is important to get a basic understanding of what they entail. a tax lien represents a right against a taxpayer\u2019s assets, and is used by the irs to secure its interest in the taxpayer\u2019s assets \u2013 both those owned at the time and those later acquired.
\n
\nthe federal tax lien arises automatically by statute when demand for payment is made by the irs and no payment is forthcoming. however, nobody knows about the tax lien except the irs and the taxpayer themselves. often, even the taxpayer does not know about it, hence the irs may decide to file a notice of federal tax lien (nftl) to let other creditors know that the irs has an interest in the taxpayer\u2019s assets.<\/p>\n

dealing with liens<\/strong><\/p>\n

here are four key ways to deal with a federal tax lien:<\/p>\n

    \n
  1. obtaining a release of lien<\/li>\n
  2. discharging assets from it<\/li>\n
  3. subordinating the lien to a third-party lender<\/li>\n
  4. having the irs withdraw the notice of federal tax lien<\/li>\n<\/ol>\n

    release of lien and discharging assets<\/strong><\/p>\n

    essentially, when the taxpayer either pays the debt in full or compromises the tax debt with the irs to settle the outstanding debt, the irs will issue a release of tax lien within 30 days after the debt is satisfied.<\/p>\n

    it is important to know that the tax lien is meant to protect the government\u2019s interest in the taxpayer\u2019s assets, not to prevent a sale. hence, the irs is generally willing to allow the asset to be discharged so long as the irs obtains payment for whatever equity the taxpayer would have received, if anything, regardless of whether the debt is paid in full or not. so, if your client is involved in a short sale where there is no equity in a property, the irs will confirm this and provide a release so the property can be sold.<\/p>\n

    here\u2019s an example:<\/p>\n

    a taxpayer owes the irs $400,000 and they own a home worth $500,000 with the following encumbrances, in the following priority order:<\/p>\n