If you owe money on a past tax return to the Internal Revenue Service (the IRS), you have probably found that they are very persistent in hunting you down in an attempt to get their money.  The initial contact from the IRS may simply come in the form of letters and phone calls under the guise of being sure you are aware that you owe them back taxes related to your tax return.  However, as time passes and the IRS continues to either not hear from you at all or not receive the money you owe them, they will realize that the non-payment of the back taxes is not simply an oversight on your part.

As the IRS can in general seek to collect back taxes for up to 10 years from the date when you filed the tax return related to that money, it is very difficult to outlast the IRS.  Before the 10-year statute of limitations runs out, the IRS will generally file a levy against you to take your property, forcing collection of the back tax owed.

However, you do have options to keep the IRS from continuing to harass you.  Here are some solutions you should consider.

Pay the federal income tax you owe.  If you are looking for help with your tax return and back taxes you owe, then odds are that you simply cannot afford to pay the back tax that you owe on your tax return.  Regardless, this point is worth mentioning and evaluating fully to ensure this solution is not an option.

If you do not have the cash available to pay the tax you owe on your tax return, do you have any other assets or property—cars, boats, homes, jewelry, real estate—you could sell for enough money to cover the back tax?  If you do and you have not been willing to sell the property because it has sentimental or other important value to you, remember that selling other property you have may be a viable solution to get the IRS off your back.

Negotiate a settlement with the IRS.  The IRS has options available to help people pay back federal income tax they owe.  One of these options is a payment plan or settlement agreement, which means that you will pay all the tax you owe not as a single lump-sum payment but as a series of payments over time.  This means that you may be able to work out with the IRS a monthly payment you can afford to address the back taxes you owe.

A second option is an offer in compromise.  An offer in compromise is when the IRS agrees to accept less than the full amount of federal income tax you owe.  But before you assume this is the best option for you, simply because it means you will have to pay less money than you thought you would, keep in mind that the IRS does not enter into an offer in compromise with a taxpayer without a good reason.  For the IRS to accept an offer in compromise, they must believe that they are unlikely to ever receive the full payment, because you have no assets or income.  In addition, you must file every past due tax return you have not filed previously.

Declare bankruptcy.  Bankruptcy is an option for addressing money you owe on a past tax return in certain cases.  Specifically, if the back tax is related to the previous three tax years, an amount assessed by the Internal Revenue Service in the past 240 days, or an amount related to an income tax return you never filed, bankruptcy cannot be used to get rid of the back taxes.  This is true whether you use Chapter 7 or Chapter 13 bankruptcy, the two most common types of bankruptcies used by individuals.

Whatever your situation, before you decide one of the above options may be for you in addressing your federal income tax situation, it would be wise to speak with a tax attorney.

Can a tax attorney help me figure out what I should do?

Yes, a tax attorney will be able to help evaluate your back taxes and determine what options is best for your situation.  The tax attorney will have experience working with cases related to past due federal income tax–situations like yours–and will know what to do.

The initial conversation you have with a tax attorney will be free of charge, completely confidential, and not obligate you to anything further.  Therefore, please take this opportunity today to learn what options you have to address your back taxes and get the IRS off your back.

Related articles

• How do I know when it is time to hire a tax attorney? (taxlawhome.com)
• Can a tax attorney guarantee results? (taxlawhome.com)
• Will the IRS pursue me if I do not file my tax return or pay my taxes? (offerincompromiselawyer.com)
• I believe the IRS has miscalculated my tax debt. What can I do? (taxlawhome.com)
• Can the IRS seize my bank accounts? (taxlawhome.com)
• How long does it take for an offer in compromise to be approved by the IRS? (taxlawhome.com)

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If you receive notice that the Internal Revenue Service (IRS) has filed a lien against your property, you may be wondering what a lien is and what the lien means for you.

A lien is the granting of an interest in a property to secure the payment of a debt that is owed by the property owner.  One of the commonly used forms of a property lien is a mortgage, which is an interest that the lender holds in the property that was purchased with the money the lender loaned to you.  When a property with a lien is sold, it guarantees to the lienholder that they will be paid out of the proceeds from the sale of the property up to the value of the lien.

When the IRS files a lien against your property, it generally means that you have an unpaid income tax liability that you owe to the IRS.  The IRS is using the lien to secure its interest in your property to increase the likelihood that you will have to pay the tax liability at some point in the future.  The IRS may take out a lien against your property if they have previously sent you a request to pay the outstanding tax liability but you have failed to respond to the requests.  The IRS may also file a lien against your property if you have agreed to a payment plan with the IRS, such as an offer in compromise, but the payment plan has not yet been completed.  In this case, the IRS is using the lien to help motivate you to fulfill your obligations under the agreed-upon payment plan, as they will only release the lien once you have completed the agreement.

A property lien filed by the IRS generally gives the IRS ten years to collect the tax liability.  During this time, the IRS can seize and sell your property to collect proceeds to pay off the tax liability.  The definition of property as it relates to a property lien filed by the IRS is very broad.  It includes not only real estate but also personal property such as cars, trucks, boats, bank accounts, wages, and interest. Even if you acquire property after the lien was filed, the lien will attach to that property as well.  In general, if you have an asset with value, the IRS can seize it and sell it.

There are only a few types of property that the IRS may not seize related to a tax lien:

Personal residence. While the IRS technically can seize your personal residence to help satisfy a tax liability, they generally will not unless it is an exceedingly flagrant case of non-payment.

Property without any value. In general, if a piece of property has more than one lien against it, the liens are satisfied in the order they were attached to the property.  That is, the first lien will be satisfied first, the second lien will be satisfied second, etc.  This holds true for tax liens as well.  Therefore, if you have a home worth $250,000 but have a mortgage for $225,000, the IRS will not seize your home because the $25,000 difference would be wiped out by the time the IRS reduces the sale price of the home sufficiently for it to sell.

Interest of an Indian in restricted land. The only piece of property that is technically exempt from a federal tax lien is land held in a trust by the United States for a Native American Indian.

As you can see from the information above, the filing of a lien by the IRS is a serious matter and it gives them a lot of power to attempt to recoup the tax liability they are owed.

What should I do if the IRS has filed a lien against my property?

If the IRS files a lien against your property, you should seek professional help from a tax attorney.  A tax attorney can help you negotiate a payment plan with the IRS in an attempt to stop the IRS from seizing and selling your property.

If you complete the short form below, a tax attorney will review your situation free of charge and with complete confidentiality.  As this review does not obligate you to anything further, please take a few minutes to get help today in dealing with the IRS.

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Your Columbus property may need protecting if the Internal Revenue Service plans a Federal Tax Lien for you.  The Internal Revenue Service pressures taxpayers into paying overdue taxes with these powerful Liens. Whether you agree with the Lien amount or not, choose your next steps carefully; much is at stake. Continue reading to learn how Liens work and how a Columbus Tax Law Attorney can help you.

You will receive written notice of the following, once the Internal Revenue Service attaches a Federal Tax Lien to your property:

• The property address against which the Federal Tax Lien is filed;
• The Lien amount;
• The county in which the Lien is recorded; and
• Contact information for the Internal Revenue Service.

Why a Lien?

After filing the Federal Tax Lien, the Internal Revenue Service becomes first in line—before you and even your mortgage company, if any—to collect from your property sale proceeds, whether you sell in one year or twenty. They legally will take as much as needed to pay-off your Lien. You lose your right to decide how to use your property sale proceeds because of the Lien.

Hidden Dangers

Liens present pitfalls many Columbus taxpayers never realize until it is too late. Consider your:

• Home’s Value: Like many Ohioans, your home’s value may be worth less today; selling it may not yield enough to pay-off your Lien and then your mortgage, if any. And you may not have enough for a down payment on your next home. Federal Tax Liens can rob you of your greatest financial asset: your home.

• Career Options: If you receive a better paying job offer, accepting it may cost you if it requires you to move. Remember that once you sell your home, the Internal Revenue Service controls your sale proceeds to pay-off your Lien. You could be left without enough to pay-off your current mortgage, afford your next home’s down payment or even pay basic moving expenses or an apartment deposit. Federal Tax Liens can rob you of a better paying job.

• Funding Your Retirement: As you consider retirement, you may think about downsizing to a smaller home and using your equity to help fund your retirement expenses. Except that with the Lien in force, the Internal Revenue Service will take your equity to clear your Lien. You may need to reconsider your retirement funding. Federal Tax Liens can rob you of your retirement plans.

• Credit Score: Your credit score can determine which credit offers you receive, the interest rates you pay, and whether you are offered certain jobs or insurance. Equifax, TransUnion and Experian may lower your score as they learn about your Lien. Federal Tax Liens can rob you of many financial opportunities, at great personal cost.

Lien Removal

Your best first step is to begin by contacting a Columbus Tax Law Attorney for advice and options. If you are entertaining ideas about attempting to remove the Lien yourself, consider these important issues:

• Your Insider Access: The Internal Revenue Service often accepts small payments as payment in full on Federal Tax Liens, if such an agreement has been reached in advance. Did they tell you about this? Probably not, because they want to collect as much as possible from you. What else do you not know?

• Your Track Record: Since you were unsuccessful on your own in preventing the Lien from being filed, how can you expect to be successful in removing it by yourself?

• Your Expertise: How vast is your knowledge of Internal Revenue Service rules and practices? How many Federal Tax Liens have you already removed?

Your goal of protecting your family’s financial security couldn’t be more different from the Internal Revenue Service’s goal of collecting as much money as possible.

Even prior experience fighting belligerent creditors or aggressive litigants may not equip you to fight a Federal Tax Lien. Remember, fighting the Internal Revenue Service equates to fighting the United States Federal Government, with all of its vast resources.

Make it a fairer fight. Contact a Columbus Tax Law attorney. Find someone who cares about your goals.

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Are you facing a Federal Tax Lien on your Cincinnati property? Federal Tax Liens are serious legal instruments used by the Internal Revenue Service to collect delinquent taxes. Right now, you may be fearful, confused or even enraged. But your actions today will have a dramatic impact on your future. Continue reading to learn about the dangers these Liens pose and the advantages of contacting a Cincinnati Tax Law Attorney.

Once the Internal Revenue Service files a Federal Tax Lien against your property, you will receive written notice of:

• The property address against which the Federal Tax Lien is filed;
• The Lien amount;
• The county in which the Lien is recorded; and
• Contact information for the Internal Revenue Service.

How Do Federal Tax Work?

Despite their urgent calls and letters to you, the Internal Revenue Service is patient. Once they file the Federal Tax Lien, they wait as long as it takes for you to sell your property. The Lien stays in place until you or even your heirs finally sell. At that time, the Internal Revenue Service will be there to take as much profit from your home sale as needed to pay off your Lien. They take funds before you or even your mortgage company, if any, can take anything. Even as the property owner, your right to determine how to spend your own home sale profits is taken from you.

Taxpayers often do not understand the many ways Federal Tax Liens can harm them. Consider your:

• Relocation Options: Does a higher paying job appear to be your best option to pay down all your debts, including your Lien? If this dream job requires you to move, you might not be able to afford it. After selling, the Internal Revenue Service will take from your profits to clear your Lien; you could be left unable to afford a down payment on your next home, or even moving expenses and an apartment deposit. Federal Tax Liens can determine the next job you take.

• Retirement Plans: Would your home’s equity help with your retirement plans? When you someday sell to collect that equity, the Internal Revenue Service has first rights to it; after they take what they want to clear your Lien, you could be left broke. Federal Tax Liens can ruin your retirement plans.

• Home Value: If your home’s value has diminished lately, selling it may not completely remove your Federal Tax Lien. Imagine selling your home and not making enough to remove your Federal Tax Lien and pay-off your mortgage, if any. Worse still, you may have nothing left for a down payment on another home. Federal Tax Liens can erase all the financial progress you have made up until now.
• Credit Score: Your credit score may nosedive once Experian, Equifax and TransUnion learn about your Lien. Higher interest rates could await you, as well as the withdrawal of credit, insurance or employment offers. Federal Tax Liens can wreck the creditworthiness you built over a lifetime.

Help Me Clear This Federal Tax Lien

A Cincinnati Tax Law Attorney can help you. Plan to do this alone? Consider these questions:

• How much do you really know about Internal Revenue Service code and procedures? How many Federal Tax Liens have you personally cleared?

• If you did not stop the Lien from being filed yourself, can you really remove it yourself without endangering your financial future?

• Often the Internal Revenue Service credits small payments as payment in full on Federal Tax Liens, if such a settlement has been negotiated. They probably did not tell you that, did they?

• The Internal Revenue Service looks out for its own interests. Who looks out for your interests?

Prior run-ins with aggressive creditors or even ill-tempered litigants may not equip you to battle against a Federal Tax Lien. Battling the Internal Revenue Service means battling the United States Federal Government, in its vast reach and powers. Battling them alone is naïve and risky.

Take bold, wise actions today.  Contact a Cincinnati Tax Law attorney. Get someone who will look out for your interests.

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Has the unthinkable happened to you? Are you in a panic (or perhaps a rage) trying to figure out how or why the Internal Revenue Service attached a Federal Tax Lien to your Detroit area home? Or perhaps you have received another menacing letter threatening that if you do not pay your Federal Tax Debt immediately, a Federal Tax Lien will be levied against your property. And to make matters worse, you might not even agree with the Internal Revenue Service that you actually owe this debt.

Should the Internal Revenue Service actually levy a Federal Tax Lien against your property, they will provide you with written notice of:

• The property address against which the Federal Tax Lien is filed;
• The Federal Tax Lien amount;
• The county in which the lien is recorded; and
• Contact information for the Internal Revenue Service.

What Does This Mean?

First of all, you may not even be certain what a Federal Tax Lien is. When you owe the Internal Revenue Service money and cannot pay them, they may attach a Federal Tax Lien to your property. They use the Lien as an insurance policy of sorts to guarantee that they will eventually get your money. The Lien is a legally binding maneuver that puts the Internal Revenue Service first in line—ahead of you (the property owner) and even the mortgage company (should you still owe on a mortgage)—to receive profits from the sale of your home.

The Internal Revenue Service uses liens because they work. If you are having enough financial problems that you cannot pay your Federal Taxes, more than likely you cannot pay other debts as well. One of your first options may be to sell your home and purchase a cheaper one. And that will be when the Internal Revenue Service will swoop in and collect all the funds from the sale of your home needed to pay-off your Federal Tax Lien. If it was up to you, you might use the profits from the sale of your home to pay a little bit on several of your debts, the Internal Revenue Service included. But once a Federal Tax Lien has been levied against your property, it is not up to you what happens to your home sale profits. The Internal Revenue Service just steps in and takes over.

And do not think that just because the Federal Tax Lien has been filed against you that the Internal Revenue Service will ease up its pressure on you. You will be pursued relentlessly until your Federal Tax Lien is cleared. Until you pay your debt, expect that any or all of these situations may befall you and your loved ones:

• Three major credit-reporting agencies (Equifax, Experian, and TransUnion) may be advised of your Federal Tax Lien. Once that happens, expect your all important credit score to decrease. Then you could be facing higher interest rates on future loans, or be denied credit, insurance or employment.
• The plans you had to use your home’s equity as a financial asset later in life, perhaps for retirement, have just been shattered. The Internal Revenue Service will be the one to benefit from your hard-earned equity, not you.
• You could end up in the nightmare scenario of selling your home and still owing the Internal Revenue Service on your Federal Tax Debt. Especially in today’s declining housing market, the profit from the sale of your home may not be enough to satisfy your Federal Tax Lien. What could be worse than selling your home, having nothing to show for it—no money to purchase another home—and still owing the Internal Revenue Service!
• In an ironic twist, your Federal Tax Lien could even prevent you from paying your Federal Tax Debt. Imagine being offered a better paying job, one that would allow you to quickly pay-off your Federal Tax Debt. You just need to sell your home and buy a new one, as this fabulous new job is in another city.  But much of the money you need from the sale of your current home to buy a new home near your new job may go straight past you to the Internal Revenue Service. So you may never be able to take that better paying job because you cannot afford to move. Can you see how your Federal Tax Lien makes you a prisoner in your own home with the Internal Revenue Service holding the keys?
• And worst of all, should you still owe on your home’s mortgage, you may still owe on it even after your home sells. Once the Internal Revenue Service takes what they need to pay-off your Federal Tax Lien, there may not be enough leftover to pay-off your mortgage. Imagine your despair as you see the equity in your home effectively transferred to the Internal Revenue Service, leaving you nothing to purchase another home, and still owing on your old home.

How Do I Stop This Disaster?

Before you do anything else, contact a Detroit area attorney licensed in Tax Law. You may consider yourself to be quite experienced in legal or financial matters, particularly if you have survived past legal battles or financial difficulties. Clearing a Federal Tax Lien is nothing like fending off a lawsuit or aggressive creditors. You aren’t fighting a lawsuit or a bank; you are in essence fighting the United States Federal Government! Whatever expertise you may have, if it was not enough to prevent the Federal Tax Lien from being levied against you, consider getting the help you need to fight the Internal Revenue Service.

Not only are you fighting the Internal Revenue Service—a behemoth—but your adversary does not always tell you the whole truth about your options. A Detroit area attorney licensed in Tax Law knows that the Internal Revenue Service often settles Federal Tax Liens for pennies on the dollar, since getting a little money from you beats getting no money from you at all. Did the Internal Revenue Service mention that in any of their countless letters and phone calls to you?

Fighting a Federal Tax Lien is unlike anything you have ever faced before. Do not be naive or foolish by thinking that it is embarrassing to talk about your tax problems. Contact a Detroit area Tax Attorney today. You need a fighting chance.

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The Internal Revenue Service may have you in its sights to file a Federal Tax Lien against your St. Louis property if you are behind on your Income Tax payments. You may have discovered that they do not care if you agree with them or not about the amount of the Lien; they can still file one against your property. Read below to learn how serious a Federal Tax Lien really is, and consider contacting a St. Louis Tax Law attorney for help.

When the Internal Revenue Service attaches a Federal Tax Lien to your St. Louis property, you will receive written notice of:

• The property address against which the Federal Tax Lien is filed;
• The Federal Tax Lien amount;
• The county in which the Lien is recorded; and
• Contact information for the Internal Revenue Service.

How Can a Federal Tax Lien Harm Me?

Even after being threatened with a Federal Tax Liens, most St. Louis residents still do not understand how the Lien works. Simply stated, it is an insurance policy for the Internal Revenue Service to ensure that, sooner or later, they will collect what you owe them. With the filed Lien, they step to the front of the line to collect profits from your home sale, before you or your mortgage company can collect a dime. If you are facing a Lien, you probably have other financial problems and may have considered selling your home. This is why the Lien is so effective in helping the Internal Revenue Service collect from taxpayers.

You may think the Lien filing is the worst thing that could happen to you, but your situation can actually get worse:

• If credit-reporting agencies like Equifax, Experian, and TransUnion learn of your Federal Tax Lien, they may downgrade your credit score. You could end up paying higher interest rates or even lose out on employment, insurance or credit opportunities.
• Any plans you have for your home equity, like retirement, may change. The Internal Revenue Service’s plans for your equity—paying off your Federal Tax Lien—now come first.

• If your home has lost value recently, selling it may not be enough to clear your Internal Revenue Service and/or mortgage company debt. Imagine selling your home, not having enough to pay-off your Federal Tax Lien and possibly even your mortgage; you could be left without even enough for a down payment on another home.

• Paying off your debts is hard, but a Federal Tax Lien can make it even harder. A better paying job might be the assistance you need, but if that job requires you to relocate, you might not be able to afford to move. If selling your home would not leave enough for a down payment on a home in your new job’s city—after the Internal Revenue Service takes the Lien amount—you may feel like a prisoner in your own home.

How Can I Clear this Federal Tax Lien?

Step One is contacting a St. Louis Tax Law attorney. Do not foolishly assume you can resolve this yourself. Do you have experience with Internal Revenue Service protocol? How many Federal Tax Liens have you negotiated? Ever persuaded the Internal Revenue Service to settle a Lien for a small percentage of the Lien amount? Clearing your Lien quickly, successfully and perhaps even for less than what you owe takes practice and prior knowledge, things that most taxpayers do not have. If you could not prevent the Internal Revenue Service from filing the Lien, how can you get them to remove it without losing everything you have worked so hard to attain?

Fighting belligerent bankers or fending off litigants does not give you the skills need to fight a Federal Tax Lien. Take on the Internal Revenue Service, and you take on United States Federal Government. How can you successfully do that without risking your financial future and your family’s security?

Turn over a new leaf today. Get the help you need. Find a St. Louis Tax Law attorney. We rarely regret getting good advice, but almost always regret the lack of it.

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Are you the recent recipient of a Federal Tax Lien from the Internal Revenue Service against your Philadelphia area property? Or has the Internal Revenue Service threatened you repeatedly to attach such a lien against your Philadelphia area property if you do not pay your Federal Income Taxes right away? In all likelihood, you are probably unable to pay your Federal Tax Debt, angry at the Internal Revenue Service and more than a little frightened about the consequences the Federal Tax Lien will create for you.

Should the Internal Revenue Service attach a Federal Tax Lien against your property, you will receive written notice that confirms:

• The property address against which the Federal Tax Lien is filed;
• The Federal Tax Lien amount;
• The county in which the lien is recorded; and
• Contact information for the IRS.

Federal Tax Liens: What Are They? Why does the Internal Revenue Service Use Them?

In layman’s terms, a Federal Tax Lien is an insurance policy that the Internal Revenue Service uses to increase their odds of getting money from you to pay-off your Federal Tax Debt. More precisely, the Federal Tax Lien is a binding legal document that gives the IRS first priority to receive money from the eventual sale of your property—priority ahead of you, the property owner. Once your property is sold, whether that happens tomorrow or years from now, the Internal Revenue Service will legally get full payment of the Federal Tax Lien from the sale of your home before you ever get a dime. And it is possible that the profit from the sale of your home may not completely cover your Federal Tax Lien, in which case you will still owe the Internal Revenue Service more money! So it is possible that you might not receive any proceeds from the sale of your own home. For most Philadelphians, this is unthinkable that their greatest asset—their home—is at risk.

Just because the Internal Revenue Service has attached a Federal Tax Lien against your property, they probably are not done harassing you and attempting to collect your Federal Tax debt.  Internal Revenue Service agents are nothing if not determined; they will not leave you alone until they obtain every possible dollar required to pay-off your Federal Tax Debt. A Federal Tax Lien is one of their most powerful tools to attempt to collect your debt, and its effects on you and your family can be significant:

• Expect that your Federal Tax Lien may appear in any or all of the three major credit report agencies’ (Equifax, Experian, and TransUnion) files. Once it does, you may see your credit score drop considerably. This could raise your interest rates on future loans or cause you to be denied credit, insurance or employment.
• Expect your opportunities to sell your home to be drastically impacted. Any homeowner understands the simple process of selling one’s home: find a buyer; agree on a contract; close the sale; pay off whatever the mortgage company is still due; and deposit your profit in the bank. Everything changes with a Federal Tax Lien.  Now, once you do sell your home, any profit first goes to the Internal Revenue Service—ahead of the mortgage company and you—until the Federal Tax Lien is paid-off.  Whatever profits you’d been dreaming of just changed.

• Believe it or not, the Federal Tax Lien often keeps you from paying-off your Federal Tax Debt. For example, should you realize that you could never pay your Federal Tax Debt on your current salary, you might look for a better paying job. If you find one that happens to be in another city or state. All you need to do is sell your home, buy a new one closer to your new job, and pay off your Federal Tax Debt quickly, right? Wrong. You will never be able to take that higher paying job because you cannot sell your home without immediately paying the Federal Tax Lien. Once you pay the Lien from the proceeds of the sale of your home, you probably will not have the money to buy a new home closer to that great job, and you have lost the home near your current job. Thanks to your Federal Tax Lien, you are stuck in your current home until you have the money to pay your debt to the Internal Revenue Service.

• Like many Philadelphians, you may still be paying on your mortgage. Should you sell your home before it is completely paid off, you would expect the sale of your home to yield enough profit to pay-off your mortgage, right? Think again. With a Federal Tax Lien in place, the funds available to you after the Lien is paid-off often are not enough to pay-off your mortgage. Do you realize what that means? You will still be paying on a home you do not own anymore, while still needing another home to live in. This is a nightmare.

So how can I remove a Federal Tax Lien from my property?

First and foremost, contact a Philadelphia attorney licensed in Federal Tax law. No matter what financial problems you may have had before, this one is different: you are not fighting a bank or a creditor; you are fighting the Internal Revenue Service. In effect, you are fighting the United States Federal Government. This is serious, and you need serious help. The Internal Revenue Service is highly skilled at collecting as much as possible from taxpayers, regardless of how it impacts real people like you and those you love. But an attorney licensed to practice Tax Law in Philadelphia can advise you on options that the Internal Revenue Service often does not offer you. For instance, your attorney can advise you that the Internal Revenue Service would rather get partial payment of your debt, even a token amount, than get no payment at all. Such a settlement requires skilled, experienced negotiations.  You can expect the Internal Revenue Service to get more and more aggressive in its efforts to collect what they maintain you owe them. Are you really prepared, on your own, to fight them and win?

You need someone to help you fight for your rights and the best possible settlement. We can help you find an advocate to fight for you.

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Are you like many Dallas area residents against whom the Internal Revenue Service has filed a Federal Tax Lien? Or perhaps the Internal Revenue Service has not actually file the Lien yet, but they are threatening you, over and over again, to pay your Federal Tax Debt immediately or suffer the consequences of the Lien. The good news is that you are not alone, and that a Dallas area attorney licensed in Tax Law can help you. The bad news, unfortunately, is that your situation may get much, much worse, particularly if you do not seek help from a Dallas area Tax Attorney immediately.

When you first saw the notices warning you of an impending Lien, you might have ignored them. Perhaps you have survived prior financial or legal crises, such as defaulting on a loan or being taken to court. Regardless of what you have been through this far, facing the Internal Revenue Service and a Federal Tax Lien is completely different. This time, you are not up against a bank or an angry litigant. You are in effect fighting the United States Federal Government when you take on the Internal Revenue Service. Do not take this matter lightly.

Why Did the Internal Revenue Service come after me with a Federal Tax Lien?

When the Internal Revenue Service uses the Federal Tax Lien as one of their options to collect your Federal Tax Debt, typically it is because less oppressive measures have not worked. The Internal Revenue Service uses Federal Tax Liens because they work. In a sense, a Federal Tax Lien puts the Internal Revenue Service in line ahead of you to take money from the sale of your home, whether that sale takes place tomorrow or years from now. When you eventually do sell your home, the Federal Tax Lien allows the Internal Revenue Service to legally take as much money from the sale of your home as is needed to pay off your Federal Tax Lien.

After the Internal Revenue Service attaches a Federal Tax Lien against your property, you will receive an important letter stating:

• The property address against which the Federal Tax Lien is filed;
• The Federal Tax Lien amount;
• The county in which the lien is recorded; and
• Contact information for the Internal Revenue Service.

Here is what makes the Federal Tax Lien so effective. If you are unable to pay the Internal Revenue Service what you owe them, the odds are good that you have other debts on which you are not current. You may be considering selling your home, taking most of the profit to catch up payments on all of your debts, and using some of it as a down payment on a more affordable home. As soon as the Internal Revenue Service files a Federal Tax Lien against your home, you lose that option. All of the profit you’re your home sale goes directly to them, until the Lien is paid off, and you have no recourse to stop them. You cannot use those funds to get current on your other debts or even to make a down payment on a more affordable home; the Internal Revenue Service takes all of it.

Consider the other ways a Federal Tax Lien can make your life difficult:

• Retirement or Other Large Financial Decisions: If your master plan financially includes cashing out the equity you worked so hard to build-up toward retirement or college for your children, you may need a new plan. Once a Federal Tax Lien is in place, the Internal Revenue Service has first dibs on your valuable equity, not you.

• Your Credit Score: Should Equifax, Experian, and TransUnion—the major credit-reporting agencies—learn of your Federal Tax Lien, expect that your credit score may decrease. A lower credit score could mean you will pay higher interest rates on future credit or possibly be denied credit, insurance or employment.

• In a bitterly ironic twist, your Federal Tax Lien could make it more difficult for you to pay off your Federal Tax Debt. Pretend you decided to whatever it took to pay-off your Federal Tax Debt to get your Lien removed; you found a job with much better pay that just happened to be far enough away that you would need to move to take it. Simple, right? Just sell your current home, take the profits as a down payment on your new home closer to the better paying job. Only it is not that simple once a Federal Tax Lien is attached to your property. The moment you sell, the Internal Revenue Service takes your home sale profit, not you, to pay off your Federal Tax Lien. You could be left without enough money for that down payment, which means you cannot take the better paying job at all. Federal Tax Liens have a way of altering your life dramatically.

Even worse, if you do decide to clear your Federal Tax Lien by selling your home and applying the profits to the Lien, you might still owe Internal Revenue Service afterward. Particularly when the Dallas housing market is weak, your home sale profit may not be enough to satisfy the Lien. If that is the case, you will be without a home or the down payment to buy a new home and still entangled with the Internal Revenue Service.

Worse still, though, is the possibility that after you sell your home and turn the proceeds over to the Internal Revenue Service, you might not have enough leftover to pay-off your mortgage. Should that happen, you will be without a home, without funds for a down payment on another home, and still owing on a home that someone else now occupies.

So What Can I Do?

First and foremost, find a Dallas area attorney licensed in Tax Law. Do not be so naïve to believe that you can successfully fight this battle on your own. Realistically, if, on your own, you were unable to stop the Internal Revenue Service from filing the Lien in the first place, how can you expect to get the Lien removed? Do you really think you can go up against the United States Federal Government alone and emerge victorious?

Consider this: Often the Internal Revenue Service accepts even a fraction of what you owe as payment in full on your Federal Tax Lien. Has the Internal Revenue Service ever told you that in their intimidating letters and phone calls? Negotiating a reduced settlement takes know-how, skill, confidence and past experience. Do not risk making your situation worse or waste any more time being afraid of the Internal Revenue Service. Contact a Dallas area attorney at  Tax Law Home today. Get the aid you need to protect what you and your family have worked so hard to create.

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