What are Tax Liens & How Should You Deal with Them?

Not paying your taxes is something that could get you into a whole world of trouble. If you are not careful, you might get a tax lien. A tax lien is a claim the IRS puts on your property when you fail to pay your taxes. It can significantly affect your credit score and affect future loans or grants you may want to apply for. There are various things you can do when you get a tax lien. Read on to find out how best to go about a tax lien.

Pay Your Taxes

The most obvious thing to do when you get a tax lien is to pay your taxes. If you have the resources and maybe forgot to file your returns, you should get to it as soon as you receive the IRS notification. Once you do this, you will get the lien removed from your property within 30 days. There are various ways to pay your taxes. You can use your credit or debit card to do this for a small fee. If you are paying large sums of money, especially for a business, there is the option of using electronic federal tax payment, which will cost you less than a card transaction. You can also do a same-day wire transfer from your bank, which is done at a small fee. Paying your tax in full is the surest and most straightforward way to get the lien removed. Depending on the amount of money you are paying back., you can pay in cash or use a money order.

Discharge of Property

If you fail to pay your taxes, then your property can be discharged. This means the IRS will possess your property, and they may sell it off to recover the money you owe them in taxes. Depending on the value of the property you chose to discharge, you might have to keep doing this until you have fully paid the IRS its dues. The discharging property process is usually long and confusing, and it would help if you had legal counsel with you. Lawyers will be better positioned to guide you on what you need to do to discharge the property and the procedures that will come afterward to ensure you have no debt with the IRS.

Get a Lien Withdrawal

While this is not an IRS tax lien removal, it will erase from the public record the fact that you have had a lien on your property. You will still need to settle your taxes fully. It is an agreement that you can get into with the IRS. Before this is done, however, several factors will come into play. For one, you can get a withdrawal if you have less than $25,000 in taxes due and have a record of having filed taxes in the past three years. You can also get a withdrawal on your lien if you can prove that getting the withdrawal will help you access a loan that you can use to pay your taxes.


What subordination means is simply aligning your loans in order of importance. You can get lien subordination from the IRS if you assure them that you will treat your taxes’ payment as a priority. In doing so, you get more time to pay off your taxes and still pay your loan or mortgage that you may have on your property without either of the parties coming to lay claim to it. It works well if you can prove to both parties that you will repay them in good time.

If you think that avoiding the IRS is a good idea, think again. By the time you are sitting opposite them, chances are they will already have a lie on one or all of your property, the surest way to avoid this is by filing your taxes on time. There are so many avenues for you to pay your taxes. If you get to a point where you get a lien on your property, then it is recommended that you get a lawyer. Lawyers will know how to go about the line and get a plan for you to pay up your taxes in time.

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