I am sure that potential home buyers, existing home owners and real estate professionals have been faced with the problem of trying to buy or sell a home that has an IRS tax lien attached to it.
My firm, By The Book Taxes, located in Norwalk, CT specializes in income tax preparation for individuals, families and self-employed people. By the Book Taxes also helps clients resolve their tax debts by preparing and filing Installment Payment Agreements, Offers-in-Compromise, Currently Not Collectible and Innocent or Injured Spouse applications.
Over the next few weeks I will explain the methods used to navigate around a tax lien so that you will be able to buy or sell that home, but first you need to know a little about the IRS collection process.
The IRS collection process works as follows:
- You file a tax return and if there is a balance due the tax is “assessed”
- You receive a billing notice asking you to pay the balance within ten (10) days
- If payment is not received, a “silent” lien arises which means you aren’t notified
- You receive an escalating series of more threatening collection letters resulting in a
- Threat to levy (take) your assets
- If you owe > $10,000 the IRS will issue a “Notice of Federal Tax Lien” (NTFL) which attaches to your assets and destroys your credit rating
- If you continue to ignore the IRS, levies will commence
Hopefully, you are never in this predicament. If you are, contact a tax professional who does tax resolution work immediately.
There are three (3) ways in which to navigate around a federal tax lien. They are:
Over the next few weeks I will go into each of these options in detail.
If you have years of unfiled tax returns or owe the back taxes, please call me. I can help.