Orlando Attorney for Federal Tax Liens

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Federal Tax Liens

If you have received a Notice and Demand for Payment or Notice of Federal Tax Lien from the IRS or Florida tax authorities, it means you have an outstanding federal income tax debt that must be taken care of. If you neglect to take action or pay the debt, the IRS can respond by attaching a federal income tax lien to your property for the amount of taxes owed plus interest and penalties.

The IRS will file a Notice of Federal Tax Lien (NFTL) in the county where you reside to notify the public as well as current and potential future creditors that the federal government has secured legal claim to your property as payment for your debt. A lien can be placed on your home, vehicles, business, and financial assets up until the time your tax liabilities have been settled (statute of limitation is usually 10 years).

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How a Federal Tax Lien Affects You

Credit: A lien can severely damage your credit rating making it difficult to obtain loans, buy or sell a home or car, get a credit card, enter a lease, even find employment. The IRS receives first priority among your creditors, so if you sold your home or car, the IRS would be the first to be paid.

Business Property: If you own or have an interest in a business, a tax lien will attach to business property and rights to business property including accounts receivable.

Bankruptcy: If you were to file for bankruptcy, your tax debt and lien carries forward after bankruptcy is discharged

The longer you wait to pay a tax obligation, the more you stand to lose. A lien can become a tax levy — meaning that the IRS will eventually begin to seize your assets and sell them to satisfy the back tax.

The good news is a tax lien may be able to be released, subordinated, removed or discharged with the help of a skilled IRS tax lien attorney. A tax lien can even be avoided altogether through early negotiation. Michael Krus has a decade of experience dealing with complex tax issues including tax liens.

Escape the grip of the IRS and call or contact us today (314) 276-4834

Getting Rid of a Federal Tax Lien

The easiest and best way to get rid of a tax lien is to pay the tax debt in full. If you can satisfy your debt, the lien will be released within 30 days. If this is not possible, the tax attorneys at the Krus Law Firm can attempt to negotiate a more manageable and favorable outcome using one of the following methods:

  • Offer in Compromise: pay a lower amount of taxes
  • Installment Plan: make affordable monthly payments
  • Discharge of Property: allows property to be sold free of the tax lien and the proceeds used to reduce your tax debt

  • Subordination: The lien may remain in place but creditors or lenders are given priority over the IRS making it easier to obtain a loan or mortgage that can be used to reduce your debt

  • Withdrawal: The IRS decides to remove the public Notice of Federal Tax Lien and promises not to compete with creditors for your property