Tax Liens - Debt Issues

Tax Debt Settlement

Tax Liens, IRS Lien, IRS Levy, Tax Relief

What are IRS and State Tax Liens and Levies?

Lien: This is a legal claim to your property as security or collateral for payment of tax debt. Basically, the IRS is telling you your property is now eligible to be seized and is being used as a security for your debt.

If the IRS files a Notice of Federal Tax Lien, all your creditors are publicly notified.
Liens may occur when: The IRS assesses your outstanding tax liability.
The IRS sends you a Notice and Demand for Payment in the amount owed.
You do not pay the entire debt within 10 days after you are notified.

If you have paid your taxes due or made arrangements for payments within the 10 day time frame, then the  IRS will send you a release of the Notice of Federal Tax Lien within 30 days.

Levy: Levies are a legal seizure of your property to settle a tax debt. The IRS may seize and sell any type of real or personal property or investment that you own or have interest in, This will happen if you did not respond to a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. These documents are served in person to your place of business, or to your last known address by certified mail.

How does a judgment become a lien against property?
A judgment attaches automatically as a lien against the real property of the judgment debtor, and continues as a lien against the debtor's real property as long as the judgment remains valid (up to twenty years).

How to get a property lien released
To have a lien removed, you will need to contact the party who placed the lien.

How to get a lien removed from your title
The secured party or lein-holder is required to file a release of security interest or lien with the recorders office. If they have not done so, the clerk will return the title to you asking that it be resubmitted with a release of security interest or lien.

How to find out why a lien was filed on property
In most cases liens are created as a result of a lawsuit. Certified copies of judgments, which affect title to real property, may be recorded. Generally the Registrar-Recorder/County Clerk serves notification by mail to debtors when an involuntary lien is recorded against them. If you have received a copy of a lien and have questions, you must contact the person or agency that filed the lien. In the case of a IRS lien you will need to contact the IRS or your accountant.

What is a Mechanic's Lien?
Mechanic's liens are a legal process which seeks to guarantee payment for contracted services rendered on an improved piece of property. Depending on the laws of any particular state, contractors, subcontractors and suppliers can file mechanic's liens within a certain amount of time after the work has been completed and payment has not been received, generally 90 days. A mechanic's lien extends to both the structure and the land beneath it. Until the debt is paid, the landowner does not own a clear title.