The Risks of Ignoring IRS Tax Issues
Not taking proper actions with your taxes can lead to many problems including liens against your property. A federal tax lien gives the IRS a legal claim to your property as security or payment for your tax debt.
These liens are a matter of public record and will appear on your credit report. This can lead to many financial problems, including:
- Reduced credit rating
- Inability to get a loan to buy a house or car
- Inability to receive a new credit card
- Inability to sign a lease
Luckily, tax liens can be released under certain circumstances allowing you to regain the use of your credit.
How a Federal Tax Lien Can Be Released
A federal tax lien can only be:
- Released
- Discharged
- Subordinated
- Withdrawn
These actions can only occur after the underlying tax liability has been fully satisfied. This can make it rather difficult to remove under normal circumstances.
Subordination of a Tax Lien
Subordinating your lien occurs when your tax lien is made secondary to another lien.
If you qualify for a direct debit streamlined installment agreement (i.e., the tax debt is less than $25,000), the lien may be withdrawn.
How We Can Help
Our experienced tax professionals constantly conduct negotiations to release:
- Wage garnishments
- Bank account levies
- Liens
We have proudly helped thousands of taxpayers over the years and will provide you with the expertise and compassion needed to help you get out of this difficult situation.
Frequently Asked Questions
What happens if I ignore an IRS tax lien?
Ignoring an IRS tax lien can severely impact your financial stability. It may reduce your credit rating, restrict access to loans and credit cards, and even prevent you from leasing a home or apartment.
Can a federal tax lien be removed from my record?
Yes, a federal tax lien can be released, discharged, subordinated, or withdrawn—but only after the tax debt is fully satisfied. These processes help restore your financial standing.
What is lien subordination and how can it help me?
Subordination means the IRS allows another creditor’s lien to take priority over theirs. This may make it easier for you to refinance or obtain a loan while the tax lien is still in place.
When can a lien be withdrawn completely?
A lien may be withdrawn if you qualify for a direct debit streamlined installment agreement and owe less than $25,000. This removes the lien from public records and improves your credit outlook.
How can tax professionals assist with IRS liens?
Tax professionals can negotiate with the IRS to release liens, wage garnishments, or levies. Their experience helps you navigate complex IRS processes and improves your chances of a favorable resolution.