Get help from a qualified tax professional to resolve your tax debt.
A tax lien is a legal document or a legal claim placed or imposed on your property by the IRS or a state tax agency to ensure the payment of unpaid taxes, penalties, and interest. This lien can significantly affect your financial stability, ability to borrow money, purchase assets, refinance existing debts, and, worse of all, sell the property where the tax lien is placed on. In worst cases, the IRS can seize and sell your property to help ensure that you cover your tax debt.
Though the methods of tax lien resolution vary depending on circumstances and the governing tax laws, there are some general factors you might fall into that can qualify you for a trouble-free tax lien resolution process through our platform:
If you believe there were errors or omissions in the assessment of your tax liability, you may be able to appeal the lien.
If you need to refinance a property or avoid foreclosure, you may need to discharge the tax lien.
If you need to refinance a property or obtain a loan secured by the property, you may apply for tax lien subordination.
If you believe the IRS or state tax agency mistakenly filed the tax lien, you may request a withdrawal.
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While there is no specific statute of limitations for the IRS to refile a tax lien, it is generally rare for them to do so after ten years. However, if you have not made substantial progress in paying off the tax debt, the IRS may take steps to renew the lien or take other collection actions.
No, an IRS tax lien does not expire. It remains in place until the tax debt is paid in full. However, the IRS may release the lien if you meet certain conditions, such as entering into a payment plan or resolving the tax debt through other means.
Tax lien subordination can help you refinance your home loan by giving the lender priority over the IRS in claiming the property. If you default on your refinanced loan, the lender will have the first right to foreclose on your home rather than the IRS. This can make obtaining a new loan easier with favorable terms, as the lender will have a lower risk.
While IRS tax liens are no longer reported as derogatory marks on credit reports by major credit bureaus like Experian, Equifax, and TransUnion (starting in 2018), they can still have a significant indirect impact on your credit score.
Although tax liens themselves don’t directly lower your credit score, the financial consequences of having a lien can. For example, if you’re unable to make payments on your mortgage or other debts due to the tax lien, your credit score could suffer from late payments or defaults. Additionally, the lien can make it difficult to obtain new credit or refinance existing loans, which can further impact your creditworthiness.
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