Tax Liens and Effects on Property

Liens are likely the most common point of issue. The reason is that the IRS can file a lien very easily, without much paperwork and, unlike levies, happens quite often even when not assigned to a Revenue Officer.

First, distinguishing a lien from a levy is very important. Liens are simply “placeholders” for the IRS interests in a taxpayer’s big assets like real property (homes). The IRS will want their share (for what is owed per the lien) in the event that the taxpayer tries to sell behind the IRS back. The liens will also affect the taxpayer’s credit score and ability to secure loans. However, as far as actual collection (such as a bank levy), the taxpayer won’t likely experience anything like this from a lien. 

Our experts work with our clients to remove liens when possible, or move towards a resolution that results in the liens being removed. Alternatively, we can strategize on how to prevent liens that have not been filed, or work on reaching resolutions that may be complicated by liens being filed, such as lien subordination or preventing of seizure.