A tax lien is the government’s legal claim against your property. Both the IRS and the Department of Revenue can file liens in respect of unpaid balances due in order to protect the government’s interests. A great number of people confuse a lien with a levy. A Notice of Tax Lien, whether filed by the IRS or the Department of Revenue, may have negative effects, which may include the following:
- Damage a taxpayer’s creditworthiness;
- Prevent the purchase of real property;
- Prevent the refinance of real property; and
- Prevent the sale of real property without the government’s consent.
There may be ways to avoid the filing of a Notice of Tax Lien. If a Notice of Tax Lien has already been filed, there may be ways to get it released or to reduce its negative effects.
If you have unpaid taxes or if the IRS or the Department of Revenue is threatening to file a Notice of Tax Lien, contact GMD Tax Law today!
The taxpayer owed a substantial amount to the IRS. In order to protect the government’s interests, the IRS filed a Notice of Federal Tax Lien which attached to his home. Due to increasing housing costs, the taxpayer wanted to sell his home and move into an apartment. However, the filing of the Notice of Federal Tax Lien prevented the sale of the home. Attorney Gregory Dzialo convinced the IRS to discharge the man’s home from the Notice of Federal Tax Lien to allow the sale to occur. The proceeds from the sale of the home were used to greatly reduce the taxpayer’s balance due with the IRS.