Release Tax Lien

“Just like Spiderman’s web, IRS tax lien works like a net or web that sticks and entangles all your assets.” 

A Tax Lien is used by the IRS as a tool for security towards or payment for income tax owed the federal government. The filing of a tax lien serves as a public notice to your creditors that the IRS has a claim on property that is in your name, including properties acquired after the lien is filed including your house, car and bank accounts.

Releasing a Tax Lien:

A tax lien from the Internal Revenue Service (IRS), California Franchise Tax Board (FTB), or California Department of Tax and Fee Administration (CDTFA) can have serious financial consequences, threatening your property, credit rating, and peace of mind. At Tax Lawyers Group APC, our Los Angeles-based tax attorneys specialize in resolving tax liens and protecting your financial interests. With extensive experience and a deep understanding of IRS, FTB, and CDTFA procedures, we help clients secure lien releases, withdrawals, or discharges to minimize damage and restore financial stability.

What is a Tax Lien?

A tax lien is a legal claim filed by the IRS, FTB, or CDTFA to secure payment of unpaid taxes. It attaches to all property you own, including real estate, vehicles, bank accounts, and even assets acquired after the lien is filed. The filing of a Notice of Federal Tax Lien (NFTL) or state equivalent serves as a public notice to creditors, signaling that the taxing agency has a priority claim on your property. This can lead to severe consequences, such as:

• Credit Damage: A tax lien can lower your credit score, making it difficult to obtain loans, leases, or new credit cards.
• Property Restrictions: Selling or refinancing property becomes challenging, as the tax lien must be addressed before title can transfer.
• Collection Actions: A tax lien increases the risk of asset seizures, wage garnishments, or bank levies if the debt remains unresolved.

Tax liens are often filed when a taxpayer fails to pay taxes after receiving notices from the IRS, FTB, or CDTFA. However, tax liens can sometimes be filed prematurely, in error, or in violation of procedural tax rules, providing grounds for release or withdrawal. Resolving a tax lien promptly is critical to minimizing its impact on your financial life.

Options for Releasing or Withdrawing a Tax Lien

The IRS, FTB, and CDTFA offer several pathways to release or withdraw a tax lien, depending on your circumstances. A release removes the lien entirely, while a withdrawal removes the public notice of the lien, which can help repair your credit more effectively. A discharge may be used to remove the lien from a specific property, such as during a sale. Below are the primary methods to resolve a tax lien:

1. Full Payment of Tax Debt: The taxing agency will release the lien once you fully pay the taxes owed, including interest, penalties, and fees. Upon payment, the IRS issues a Certificate of Release of Federal Tax Lien, typically within 30 days.
2. Offer in Compromise (OIC): If you cannot pay the full debt, you may negotiate an OIC to settle the tax liability for less than the amount owed. Once the OIC is accepted and paid, the lien is released.
3. Bond Submission: The IRS may release a lien if you submit a bond guaranteeing payment of the debt. This is less common but can be an option in specific cases.
4. Expiration of the Statute of Limitations: Tax liens automatically expire 10 years after the tax is assessed, provided the taxing agency does not extend the collection period. However, waiting for expiration is risky, as the lien remains active and damaging in the meantime.
5. Certificate of Discharge: If you’re selling a property (e.g., a home or vehicle) encumbered by a lien, you can apply for a Certificate of Discharge to remove the lien from that specific property. This requires demonstrating that the sale proceeds will be used to pay the tax debt or that the lien’s removal benefits the taxing agency.
6. Lien Withdrawal: The IRS or state agency may withdraw the NFTL under certain conditions, such as:
   • The lien was filed prematurely or in violation of procedural rules.
   • Withdrawal facilitates faster collection of the tax (e.g., by enabling you to secure a loan to pay the debt).
   • Withdrawal is in the best interest of both the taxpayer and the government, such as when it helps you maintain financial stability.
   • The taxpayer was in bankruptcy, and the lien was filed in violation of the automatic stay.
   • The tax assessment was erroneous or procedurally flawed.
   • The taxpayer was not given a proper opportunity to dispute the tax liability.
7. Tax Bankruptcy Violations: If a lien was filed while you were under tax bankruptcy protection (violating the automatic stay), it may be eligible for withdrawal or release.

Each option requires careful documentation and compliance with agency procedures. At Tax Lawyers Group APC, our Los Angeles tax attorneys thoroughly analyze your case to identify the most effective strategy for resolving your tax lien.

Why Resolving a Tax Lien is Critical

A tax lien can have far-reaching consequences beyond the immediate threat to your property. Its impact on your credit rating can limit your financial opportunities, including:

• Loan Denials: Banks and lenders may refuse mortgages, auto loans, or business financing due to the lien’s presence on your credit report.
• Leasing Challenges: Landlords or leasing companies may reject applications for apartments, commercial spaces, or equipment leases.
• Credit Card Restrictions: New credit card applications may be denied, and existing accounts may face reduced limits or closures.

The longer a tax lien remains active, the greater the damage to your financial reputation. Prompt action is essential to mitigate these effects and prevent escalation to more aggressive tax collection actions, such as tax levies or seizures.

The Tax Lawyers Group APC Advantage

Resolving a tax lien requires a deep understanding of IRS, FTB, and CDTFA regulations, as well as strategic negotiation skills. At Tax Lawyers Group APC, our Los Angeles tax attorneys bring unparalleled expertise and a client-centered approach to every case. Here’s why we’re the trusted choice for tax lien resolution:

• Specialized Tax Expertise: Our tax attorneys have extensive experience handling tax liens, with a thorough understanding of federal and California tax laws. We stay current on agency procedures to ensure compliance and maximize outcomes.
• Comprehensive Case Analysis: We conduct an in-depth review of your tax records, lien notices, and financial situation to identify grounds for release, withdrawal, or discharge. This includes examining whether the lien was filed in error or in violation of your rights.
• Strategic Advocacy: We negotiate directly with the IRS, FTB, or CDTFA on your behalf, presenting compelling arguments to secure lien resolution. Whether through full payment, an OIC, or procedural challenges, we pursue the most effective path.
• Proactive Solutions: We explore all available options, including Offers in Compromise, installment agreements, or bankruptcy, to address the underlying tax debt and prevent future liens.
• Proven Success: Our track record includes successfully securing lien releases, withdrawals, and discharges for clients, helping them restore their financial stability and credit.

Our commitment to personalized service ensures that we tailor our approach to your unique circumstances, providing clear guidance and compassionate support throughout the process.

Steps to Resolve Your Tax Lien

At Tax Lawyers Group APC, we follow a structured process to resolve your tax lien efficiently:

1. Case Evaluation: We review your tax lien notice, tax records, and financial situation to determine eligibility for release, withdrawal, or discharge. We also assess whether the lien was filed correctly or if procedural errors provide grounds for challenge.
2. Strategy Development: Based on our findings, we develop a tailored plan to resolve the lien. This may involve negotiating an OIC, submitting a bond, applying for a Certificate of Discharge, or requesting withdrawal due to procedural violations.
3. Documentation and Filing: We prepare and submit all necessary forms, such as IRS Form 12277 (Application for Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien) or Form 14135 (Application for Certificate of Discharge of Property from Federal Tax Lien), along with supporting evidence.
4. Negotiation and Resolution: We engage with the taxing agency to advocate for your case, addressing any objections and ensuring compliance with their requirements.
5. Post-Resolution Guidance: After the lien is resolved, we provide advice on rebuilding your credit, maintaining tax compliance, and preventing future liens.

Take Control of Your Tax Lien Today

A tax lien doesn’t have to define your financial future. With the right strategy and expert representation, you can secure a release, withdrawal, or discharge and move forward with confidence. At Tax Lawyers Group APC, our Los Angeles tax attorneys are dedicated to resolving your tax lien and protecting your assets, credit, and peace of mind.

Contact us today at (310) 788-9820 or email us to schedule a confidential consultation. We’ll review your tax lien and develop a customized plan to resolve it as quickly as possible. Visit our website for more information on our tax lien services. Let Tax Lawyers Group APC help you break free from the burden of a tax lien and reclaim your financial freedom.