In difficult economic times, many property owners fall behind in their tax payments. As a claim of security against that tax debt, the IRS may place a tax lien on your home or property. This means the U.S. government has the legal right to your property until that debt is discharged.
Likewise, the Indiana Department of Revenue (DOR) may put a tax lien against your property as collateral to pay for a tax debt to the State of Indiana.
A tax lien impedes your ability to engage in any dealings with your property. You may not be able to sell or refinance your residence or property at a time when you may have tremendous need to sell that property.
If you have an IRS or state tax lien on your home and you want to sell or refinance, Dutton Legal Group can help you.
Tax lien subordination is when the IRS agrees to take a secondary position on your home’s title so you can sell or refinance your home even when the IRS has filed a tax lien against your home.
In other words, by subordinating the lien, another creditor or lender is allowed to move ahead of the U.S. government, giving that lender priority to the property and permitting the refinance or sale of the property. Subordination may also give you an opportunity to use equity to pay tax debt or challenge the lien filing in Tax Court.
Without lien subordination, you may be unable to refinance or sell your home when you owe taxes. In Indiana, a tax warrant is the equivalent of an IRS tax lien.
As your tax attorneys, we will need to show evidence (such as property value, existing debt, lender and loan information) and make the argument that, by granting subordination, the IRS benefits because the subordination expedites the collection of the tax debt owed.
Dutton Legal Group has successfully brokered lien subordinations for our clients, lowering their IRS debt and putting them in a better financial situation going into the future.
Tax lien release is when the IRS agrees to release a federal tax lien that was filed in the clerk’s office in the county in which you have real estate. The IRS is required to release liens after your tax debt is cancelled, corrected, or paid, but sometimes the IRS fails to do so.
Tax lien withdrawal is when the IRS agrees to remove a federal tax lien that appears on your credit report due to unpaid taxes. An IRS tax lien can stay on your credit report, even if you have paid all of your taxes, if the IRS has not withdrawn its tax lien. The IRS usually does not withdraw a federal tax lien on its own; you have to request that the lien be withdrawn.
Further, even if you still owe taxes, the IRS may withdraw its tax lien, if you request a lien withdraw and the IRS grants it.
Dutton Legal Group has successfully released and withdrawn liens based on cancellation, correction, or payment of tax debt and even when the underlying taxes remained unpaid, improving our clients’ credit scores and financial well-being in the process.
If you work with the right tax lawyer in Indiana, you stand a far better chance of negotiating better, even favorable terms with the state tax authorities or IRS.
We can begin helping you immediately. Call to speak with a tax attorney at our law firm today and request a free consultation about your tax problem.