Are you trapped by an IRS lien? It’s a common problem that can severely limit your financial options. An IRS lien can prevent you from selling your property, refinancing your mortgage, or even getting a loan.
Lien subordination is a specific action taken to change the priority of a lien. In simpler terms, it means moving a lien to a lower position in the order of creditors with property claims. This is often done to allow another creditor, such as a lender for a mortgage or a home equity loan, to take priority.
Imagine you have an IRS lien on your property. You want to borrow money from a bank to refinance your mortgage and lower your interest rate. The bank may require the IRS lien to be subordinated before approving the loan. This means the bank’s mortgage lien will take priority over the IRS lien. If you default on the mortgage, the bank can foreclose on the property without interference from the IRS.
In essence, lien subordination is a strategic move to prioritize certain creditors over others, often to facilitate financial transactions or protect property interests.
The eligibility criteria for IRS lien subordination can vary. Factors such as your financial situation, the amount of your tax debt, and the specific terms of your lien can influence your eligibility.
To determine if you qualify for an IRS tax lien discharge, consider the following factors:
We’ll evaluate your situation to determine your eligibility for IRS lien subordination. This includes assessing your financial situation, the amount of your tax debt, and the specific terms of your lien.
We’ll gather the necessary documents to support your application. This may include:
We’ll help you complete and submit Form 14134, Application for Subordination of Federal Tax Lien, to the IRS. This form requires detailed information about your financial situation, the proposed transaction, and the reasons for requesting the subordination.
In some cases, the IRS may require additional information or negotiations to approve your application. Our team will work with you to address any concerns and secure favorable terms.
Once the IRS approves your application, you’ll receive a Certificate of Subordination. This document officially changes the priority of the IRS lien, allowing another creditor to take precedence.
For detailed instructions, refer to IRS Publication 784.
The documents required may vary depending on your specific circumstances. Having all the necessary documentation ready before submitting your application to expedite the process is essential.
Automated Tax Credits offer a streamlined and efficient solution for IRS lien subordination. Here’s why you should choose our services:
If you have an IRS lien on your property, it can limit your financial options. An IRS lien subordination can help you:
To apply for an IRS lien subordination, you must complete Form 14134 and submit it to the IRS. You may also need to provide supporting documentation, such as proof of income, property records, and financial statements. Though the guidelines are stated in detail in IRS Publication 784, our platform provides you with a streamlined process that provides you with the appropriate forms and guides to ensure that your application is hassle-free and cost-effective.
The chances of your application’s approval depend on various factors, including the amount of your tax debt, your financial situation, and the specific terms of your lien. The IRS may also consider the proposed use of funds and your ability to repay your tax debt. While there are no guarantees, working with a qualified tax professional can improve your chances of success.
You may have the option to appeal your application in case the IRS denies it. The steps involved in the appeal process will vary, so it’s important to contact us for guidance. We can help guide you through the appeal process.
Get a free case evaluation to solve your tax related issues.
Automated Tax Credits, 5342 Clark Rd Unit 1236 Sarasota, FL 34233
(213) 329 1786
Monday - Friday
9:00 AM EST- 7:00 PM EST
By submitting this form, you are providing consent to be contacted by Automated Tax Credits and its partners and to receive messages including contact through automatic dialing systems or text message. As per the Terms of Service and Privacy Policy. Message and data rates may apply. You may also text “STOP” any time to opt-out of our text messaging service.