Have you ever been confused about a levy vs. a lien ? A lien is primarily when a taxpayer owes back taxes and they have secured property (house,car) that the government could seize the profits if one happens to sell that property to another individual. The government has to be paid after the financial lenders before the original owner can make a profit. A lien is a public notice where you can only get lifted at your area courthouse when all debts are paid in full to the IRS.
Most taxpayers don't realize that when a public lien is filed and you try to sell your property, the prospective buyer will need to have the lien subordinated or the lien will attach itself to the new homeowner. If the IRS has placed a public lien (which is what a lien consist of) upon your property, don't wait to talk to someone about working towards getting that lien removed.
However, the IRS will not file a lien under the following circumstances:
-If one becomes deceased
-Owes less than $5000
-Currently in a Streamline Installment Agreement; not if the total or accessed is over $25K
-If in anyway cause the Taxpayer not to be able to pay liability (i.e. lien effects his ability to earn or borrow).
Effectur is a company where there are well trained tax-consultants that can help with liens and tax deliquent issues.
Sunday, February 3, 2008
Liens
Posted by Anonymous at 6:09 PM
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