IRS Collections: Lien Removal
If the IRS has made a notice and demand for payment of back taxes (CP-504B) and you have failed to respond, a lien will automatically arise in favor of the federal government. A tax lien gives the IRS a legal claim to your property and is a way for the IRS to ensure that they will collect the back taxes that you owe. The IRS will typically issue and file a Notice of Federal Tax Lien (Form 668), informing you that a lien has been filed over all your property rights as well as informing you of your right to a Collection Due Process hearing (CDP).
A tax lien makes it extremely difficult to sell property that you own or to secure loans or lines of credits with banks or other financial institutions. In this tough economy, a lien can have a huge impact on a homeowner who wants to buy or sell a home or obtain a line of credit or other loan. It also may negatively affect businesses that need to secure loans to finance the operations of its business.
The tax lawyers of Dallo Law Group are trained and educated in the lien process and in the types of property that are exempted or not covered by the lien and can prevent the IRS from putting a hold on your livelihood. We can also work with the IRS to diminish the impact, effect, and scope of your lien so that you can secure financing for your personal or business needs. If the IRS is being overly aggressive and uncooperative, our tax attorneys can demand a collection due process hearing (CDP,) and we will use our legal and negotiation skills to get the best results for you!
***IMPORTANT NOTE*** There is a big difference between a lien and a levy. A lien limits the ability of the taxpayer to dispose of property or to obtain financing while a levy is an actual collection activity of the IRS to collect the back taxes that are owed. For more information on the levy process and how Dallo Law Group can help.