IRS lien release or subordination is desired by all taxpayers, but the hard reality is IRS seldom releases or subordinates a tax lien before full payment or before the ten year collection statute expiration date.   So do not be fooled by incompetent representatives that claim or advertise a federal tax lien release or subordination is routine or easy.  

A federal tax lien is the United State’s claim against the taxpayer’s property when an assessed but unpaid federal tax liability exists.  IRS claims it will file a Notice of Federal Tax Lien when the taxpayer neglects or fails to pay. To file a Notice of Federal Tax Lien means that IRS will record it in the County Recorder’s Office, to put the public on notice of the unpaid IRS tax liability and that IRS’ tax lien attaches to the taxpayer’s property.  

There Are A Few Collection Remedies To Obtain Federal Tax Lien Release Or Subordination

Despite the fact that IRS rarely releases tax liens, there are a few fact situations that you or your business might consider fighting for relative to lien release or lien subordination.

Offer In Compromise – Doubt As To Collectibility, If Accepted. If IRS accepts an offer in compromise, doubt as to collectibility {taxes owed, but cannot full pay}, IRS will release the tax lien upon full payment of the accepted offer amount, which is usually much less than the original federal tax liability owed.

Lien Subordination.  A Certificate of Subordination does not release the federal tax lien, it allows some other creditor to move ahead of the United States, meaning the other creditor has priority to some or all of the taxpayer’s assets which is superior to the the federal tax lien.  Generally, the taxpayer must present argument and evidence that the United States benefits by granting subordination in that the subordination will facilitate collection of the tax liability owed.  

Lien Release If In The Best Interests Of The United States.   This is possible, but not often IRS granted.  If the taxpayer can prove that federal tax lien release will increase IRS’ collection of the unpaid federal tax liability, full lien release is possible.  An example would be that the taxpayer’s income source prohibits by contract the existence of a tax lien, and IRS’ failure to release its federal tax lien will result in the taxpayer’s loss of income.

Hire An Experienced Tax Lawyer To Argue For Lien Release Or Lien Subordination

Lots of good people end up with tax problems and related tax liens for a variety of life’s reasons.  Most people facing tax problems fear the almighty IRS and IRS’ mean and aggressive tactics.  Do not engage IRS on your own as self represented because if you do chances are you will fail to obtain your objectives.  If you owe IRS $50,000 or more, then hiring a tax lawyer is justified financially.   Call me for a free telephone consultation, you will be gald you did so.  (877) 895-2950.