If you need an IRS tax lien attorney in Massachusetts, GMD Tax Law can help. A federal tax lien can affect your home, real estate transactions, business assets, and financial future.
At GMD Tax Law, I work directly with individuals and business owners throughout Massachusetts facing IRS tax liens and other federal tax collection actions.
I provide IRS tax lien help by reviewing the underlying tax liabilities, evaluating the legal and financial consequences of the lien, and pursuing appropriate relief with the IRS.
A federal tax lien does not automatically mean the IRS will seize your property. However, leaving the underlying tax problem unresolved can create significant financial complications and expose you to additional collection action.
Speak directly with a Massachusetts tax attorney about your IRS tax lien.
A federal tax lien is the government’s legal claim against a taxpayer’s property and rights to property arising from an unpaid federal tax liability.
The IRS may also file a public Notice of Federal Tax Lien to protect its interests against certain third parties. Once recorded, that notice can complicate transactions involving real estate, business property, and financing.
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GMD Tax Law provides IRS tax lien representation throughout Massachusetts, including Boston and Quincy.
Under Internal Revenue Code Section 6321, a federal tax lien generally arises when the IRS assesses a tax liability, makes notice and demand for payment, and the taxpayer neglects or refuses to pay.
The lien generally attaches to the taxpayer’s property and rights to property, including certain property acquired after the lien arises.
The underlying federal tax lien and the public Notice of Federal Tax Lien are different. The lien is the government’s legal claim. The recorded notice provides public notice of that claim and helps establish priority against certain third parties.
Unlike an IRS levy, a tax lien does not itself seize money or property.
Learn more: What Happens After the IRS Files a Tax Lien?
Even when the IRS has not taken any property, a federal tax lien can interfere with important financial decisions.
A federal tax lien may attach to a taxpayer’s interest in a home or other real property.
If you attempt to sell or refinance the property, the lien may need to be addressed before the transaction can be completed. Depending on the circumstances, payment, discharge, or subordination may provide a way to proceed.
The amount of equity, existing mortgages, ownership interests, and the IRS’s legal rights can all affect the available options.
Federal tax liens may also affect business assets and financing arrangements. A recorded lien can complicate borrowing, asset sales, and transactions involving property in which the taxpayer has an interest.
Business owners facing federal tax liens may also have unresolved payroll tax or other collection issues requiring separate attention.
Federal tax liens generally no longer appear on the major consumer credit reports. However, a recorded Notice of Federal Tax Lien remains a public record and may be considered by lenders or others evaluating a financial transaction.
Learn more: Does an IRS Tax Lien Affect Your Credit?
Several legal procedures may provide relief from a federal tax lien or reduce the consequences of a recorded Notice of Federal Tax Lien.
The appropriate approach depends on the outstanding tax liability, the property involved, the taxpayer’s financial circumstances, and the applicable legal requirements.
A federal tax lien generally must be released when the underlying liability has been fully satisfied, becomes legally unenforceable, or an acceptable bond has been furnished under applicable law.
When the statutory conditions are met, the IRS generally must issue a certificate of release within 30 days.
Withdrawal removes the public Notice of Federal Tax Lien in qualifying circumstances.
Withdrawal does not necessarily eliminate the outstanding tax debt or extinguish the underlying statutory lien.
Depending on the circumstances, withdrawal may be available when the notice was filed improperly, certain installment agreement requirements are satisfied, or other statutory conditions apply.
A discharge removes particular property from the effect of a federal tax lien when the applicable legal requirements are met.
This may be relevant when a taxpayer wants to sell real estate or complete a transaction involving specific property while other federal tax liabilities remain outstanding.
Subordination allows another creditor’s interest to take priority over the federal tax lien under qualifying circumstances.
It may be useful in certain refinancing or financing transactions, particularly when the arrangement is expected to improve collection of the federal tax liability.
These remedies are not interchangeable. Selecting the appropriate strategy requires evaluating the tax debt, lien filing, property interests, and circumstances of the case.
Contact GMD Tax Law to discuss your IRS tax lien and available relief.
When the IRS files a Notice of Federal Tax Lien, it generally must notify the taxpayer of the filing and the right to request a Collection Due Process hearing.
IRS Letter 3172 commonly provides notice of the filing and explains the taxpayer’s hearing rights.
A timely Collection Due Process hearing request generally must be submitted within the statutory 30-day period. Missing that deadline can affect the taxpayer’s procedural rights, including access to judicial review.
Depending on the circumstances, the hearing may address the appropriateness of the lien filing, collection alternatives, and other matters permitted by law.
Because deadlines and available remedies depend on the taxpayer’s notices and procedural history, prompt review is important.
Not necessarily. A federal tax lien and an IRS levy are two different collection mechanisms.
A lien establishes the government’s legal claim against property. A levy is an enforcement action through which the IRS may seize property or rights to property to satisfy an unpaid tax liability.
The filing of a federal tax lien does not automatically mean a levy will occur. However, taxpayers with unresolved tax liabilities may face additional enforcement if the applicable legal requirements are satisfied.
Learn more: IRS Tax Lien vs. IRS Levy: What’s the Difference?
If the IRS has already frozen your bank account, see my IRS Bank Levy Help page.
A federal tax lien generally continues while the underlying assessed tax liability remains legally enforceable, subject to applicable statutory rules.
The IRS generally has ten years from assessment to collect a federal tax liability. However, certain events can suspend or extend the collection period.
A recorded Notice of Federal Tax Lien also has separate rules involving refiling and self-release.
Determining whether a lien remains enforceable may require reviewing the assessment date, collection statute expiration date, account transcripts, lien filing history, and any applicable suspensions or extensions.
Learn more: How Long Does an IRS Lien Last?
Federal tax lien matters require more than simply determining whether a lien has been recorded. The underlying tax liability, property interests, collection history, and potential remedies must be considered together.
I review available IRS transcripts, tax assessments, notices, lien filings, and collection history to identify the liabilities and legal issues involved.
I evaluate how the lien affects the taxpayer’s property, business interests, financing, or proposed transactions.
Depending on the circumstances, I assess whether release, withdrawal, discharge, subordination, administrative appeal, or another form of relief may be appropriate.
I communicate directly with the IRS to address the lien, pursue available remedies, and work toward resolving the underlying collection matter.
Addressing the immediate lien issue may be only one part of the case. Depending on the taxpayer’s financial circumstances, additional options may include an installment agreement, Currently Not Collectible status, an Offer in Compromise, or other appropriate collection relief.
Learn more about my IRS Tax Relief representation.
Potentially. A federal tax lien can complicate a sale, but certain transactions may proceed when the lien is properly addressed. The property’s equity, existing liens, ownership interests, and the availability of a discharge or other relief can affect the outcome.
Not automatically. An installment agreement may limit certain collection actions, but an existing federal tax lien can remain in place. Withdrawal of a filed lien notice is available only when the applicable requirements are satisfied.
Yes. A federal tax lien generally arises by operation of law after assessment, notice and demand, and failure to pay. The IRS ordinarily does not need a court judgment to file a Notice of Federal Tax Lien.
Yes. A federal tax lien may become unenforceable when the underlying collection period expires, subject to applicable suspension and extension rules. The recorded notice and the underlying statutory lien must be evaluated separately.
In qualifying circumstances, yes. Withdrawal may be available even though the underlying tax liability remains outstanding. The applicable statutory conditions must be satisfied.
If the IRS has filed a tax lien against you, waiting may allow the underlying collection problem to become more complicated.
Whether the lien is affecting your home, business, financing, or ability to complete a property transaction, the appropriate strategy depends on your circumstances.
At GMD Tax Law, I provide direct attorney representation to individuals and business owners facing federal tax liens throughout Massachusetts.
Contact GMD Tax Law to schedule a consultation about your IRS tax lien.
If the IRS has filed a federal tax lien against you or your business, contact GMD Tax Law to discuss your options. Attorney Gregory M. Dzialo, Esq., LL.M. in Taxation, provides direct representation to Massachusetts taxpayers facing federal tax liens and collection matters. Call 617-237-6347 or email gdzialo@gmdtaxlaw.com to schedule a consultation.
