Nationwide Tax Lien Attorneys

The IRS has different means of substituting tax issues from individuals who fail to pay their taxes on time. The IRS issues tax liens to attempt to acquire your properties and assets in order to satisfy ongoing tax problems. It’s a tricky situation to navigate and if you currently find yourself in the midst of this process, you could certainly use the tax lien expertise available at Victory Tax Lawyers.

Our tax expert attorneys will help you deal with federal tax liens in a matter that won’t lead to you having to let go of your most valuable properties and assets. Read on below to learn more about how a tax lien works and how Victory Tax Lawyers can help you deal with any incoming or ongoing IRS tax liens.

What Is A Tax Lien?

A tax lien is the government’s legal claim against property that you own when you fail to pay off a tax issue. The tax lien works in favor of the government to protect their interest in your property. This includes real estate, personal property, and all of your financial assets. It mostly comes into effect at the time of sale of real property.

California Tax Lien

The California tax lien is applicable to all taxpayers in the state in the event of tax issues. The state tax lien is enforced on all property and rights to property of a taxpayer. The Notice of State Tax Lien is usually stated in the taxpayer’s credit report as it is a matter of public record.

How Do I Avoid A Tax Lien?

The best way to avoid a tax lien is to simply file and pay all of your taxes with proper tax preparation in full by the due date. Victory Tax Lawyers will make sure you file your taxes on time in order to avoid any hassles with the IRS. We consider all of the payment options provided by the IRS to tailor to your unique situation in order to help settle any outstanding tax issues you owe the federal government.

How To Find Out If You Have A Tax Lien

Your first step to confirm whether or not you have a tax lien is by contacting the IRS Centralized Lien Unit at (800) 913-6050. If no lien has been placed yet, but you suspect it may be impending, look up your current balance on the IRS website and pay it off. Another method to check the status of any “lien filings” against you is by searching your secretary of state’s website. Additional legal databases can also provide you with this information for a fee. However, the IRS isn’t the only government agency with the power to place a lien on your property. If you don’t pay your local taxes on time, you also run the risk of the state placing a lien on your home or other property. The county will be able to confirm whether or not a lien was placed on your home. From there, you’ll need to get in touch with the state government in order to begin paying off your back taxes. The state of California offers a number of payment options, including a payment plan for a \$34 fee. Upon your state tax liability being paid off, the lien can be lifted.

How Do I Get Rid of A Tax Lien?

Victory Tax Lawyers can help you get rid of an IRS tax lien in the fastest and least complicated way possible. One of the obvious ways is by simply paying off any tax issue you owe. We will help figure out the amount you owe to the IRS in order to not have to deal with a tax lien later. However, if you are forced to deal with an ongoing tax lien, once you have cleared all tax-related problems, within 30 days the IRS will withdraw the tax lien.

Subordination

When our clients are not eligible to remove their ongoing tax liens, we offer them the choice of opting for Subordination. This makes it easier for the taxpayer to get a loan, a mortgage, or refinance. Please reach out to Victory Tax Lawyers to ask any one of our knowledgeable tax lawyers for a free consultation to confirm your eligibility for subordination. We follow the rules of IRS Publication 784 to guide you correctly.

Discharge of Property

If you wish to wipe off a tax lien from a specific property, our tax experts can help you apply for a discharge. We will analyze your eligibility based on the different types of Internal Revenue Code provisions you qualify for according to the IRS Publication 783.

How Can a Tax Lien Affect Me?

A tax lien from the IRS can impact an individual in various ways, including:

• Assets: The lien may attach to all personal assets, spanning property, vehicles, securities, and any future assets acquired while the tax lien is in effect.
• Business Impact: The IRS tax lien might extend to business properties, affecting ownership rights and accounts receivable.
• Credit: The filing of a Notice of Federal Tax Lien by the IRS could restrict your capacity to secure credit.
• Bankruptcy: Even after filing for bankruptcy, the lien, along with your tax difficulties, might persist.

The Auction Process for Tax Liens

Different Types of Auctions

There are primarily two types of tax lien auctions:

• Bid Down the Interest: Investors bid down the interest rate that the property owner will have to pay upon redeeming the tax lien. The winning bidder is the one willing to accept the lowest interest rate.
• Premium Bidding: Investors bid on the tax lien certificate’s price, often starting from the amount of unpaid taxes and possibly going higher. The winning bidder is the one who pays the most for the tax lien certificate.

Preparation and Research

It’s crucial to familiarize oneself with the auction process before participating. This involves:

• Understanding the laws and regulations related to tax liens in the respective state or county.
• Engaging in thorough research about the properties listed for tax lien sale to ascertain the risk and assess potential returns.

Online Platforms and In-Person Bids

Tax lien auctions can occur in-person or online, depending on the jurisdiction’s preferences. Numerous counties have migrated their tax lien sales to online platforms to enhance accessibility and efficiency, while some still adhere to traditional in-person auctions.

Crafting a Successful Bidding Strategy

Risk Assessment

Investing in tax liens involves substantial risk. Therefore, comprehensive due diligence is paramount to mitigate potential losses. This includes evaluating the property’s condition, understanding its market value, and considering its geographical and economic context.

Financial Management

It’s imperative to manage finances adeptly by setting a maximum bid amount for each property to avoid overcommitting and ensuring a diversification of investments to spread risk.

Legal Comprehension

Understanding the legal and bureaucratic aspects, like the redemption period and rights of the tax lien holder, is essential to avoid missteps and safeguard the investment.

Landscape of Tax Lien Certificates

In essence, a tax lien certificate is a claim against a property for unpaid property taxes. When a property owner defaults on their tax payments, the government can impose a lien on the property. To recover the owed tax amount, the government can then sell a tax lien certificate to investors. This offers a double-edged opportunity: municipalities recover vital funds, while investors acquire a potentially lucrative investment.

Influences on Credit Score

The relationship between tax liens and credit scores is complex, possessing the ability to redefine an individual’s financial trajectory by affecting borrowing capabilities and credibility in the financial marketplace.

Direct Impact

Until 2018, tax liens were a conspicuous part of credit reports, directly influencing credit scores. Their presence signified a high-risk borrower, naturally plummeting credit scores, and making favorable borrowing terms an unlikely reality.

The Pervasive Impact

Even though tax liens have been removed from credit reports since 2018, their impact persists in a more clandestine manner. The unpaid taxes, which fostered the lien, may manifest as unpaid debts on credit reports, thereby indirectly impacting credit scores.

What’s the Difference Between A Lien and A Levy?

Contrary to popular belief, a tax lien and tax levy are not the same. A lien secures the government’s interests in your property whenever you fail to pay your taxes on time. A levy allows the IRS the power to seize or garnish your most valuable property in order to satisfy your outstanding tax issues. This is why at Victory Tax Lawyers, we encourage our clients to at least arrange to pay the taxes in installments if they are not in a financial position to pay it all at once.

It’s never a good idea to ignore the IRS or choose not to pay off your tax problems. This negligence could lead to your property, vehicles, money, and other assets being seized and auctioned off in tax lien sales, especially once the IRS obtains a lien certificate – an official claim against your property.

If you pay off your tax issue after your property has been seized, Victory Tax Lawyers will fight for you to get back what is rightfully yours through a release of lien form, also known as Form 14134. This may sometimes fall under the conditional release if you have already paid back everything you owe to the IRS.

Victory Tax Lawyers work with the IRS in many ways to help our clients pay off their tax issues. Filing for taxes is a complex process. It is always better to let our tax attorneys handle the process and guide you to the appropriate options.