Tax Seizure and Tax Lien Removal Help

You’ve worked hard to earn the things you own and the money you bring home every month. But if you owe back taxes, the government can legally slap a lien on your property, from your house down to your wedding ring. A tax lien grants the IRS or State the authority to seize your property or the proceeds of any property you sell, or make it impossible to obtain credit or refinance your home altogether. The IRS can seize various types of property, including personal and business assets, to satisfy unpaid tax debts. The IRS can also seize real property, retirement accounts, state tax refunds, and even social security benefits, and federal law governs which assets can be legally seized. The IRS issues a notice of seizure and may use certified mail to notify the individual taxpayer or business property owner. Worse, you may not even know you have a lien on your credit report until a title search or employment screening process is conducted. The IRS sends a final notice and an intent to levy before proceeding to seize property. In rare cases, even a primary residence can be seized with court approval. For the IRS to legally seize a primary residence, the approval of a district court judge is required. The IRS physically takes possession of seized assets and may sell the property at a public auction, setting a minimum bid price based on the fair market value. A notice of sale is then sent to the taxpayer. The IRS can also garnish wages and seize other property not explicitly listed, and undue hardship may be considered before seizing property. It is essential to pay your taxes to avoid IRS asset seizure, as the IRS takes these actions only after following proper procedures.

Contact Lothamer Tax Resolution immediately if you’ve received a Notice of Lien or know you owe back taxes. The longer you wait, the greater your risk of losing essential rights or incurring a tax lien on your property or a levy on your income. It is crucial to respond quickly to IRS seizure notices to avoid having the IRS take or sell your property to satisfy your tax debt.

Understanding Tax Liens

A federal tax lien is a serious legal claim the Internal Revenue Service (IRS) files against your property when your tax debt remains unpaid. This lien attaches to all of your assets—real estate, personal property, and even future financial assets—giving the IRS the right to seize property if you fail to resolve your tax liability. Once a tax lien is in place, it can impact your ability to sell or refinance your property and may appear on your credit report, making it more challenging to secure loans. If the IRS files a tax lien, it signals that collection actions may soon follow, including the potential for the IRS to seize property to satisfy unpaid tax debts. If you receive notice of a tax lien, it’s crucial to act quickly to address your tax debt and protect your assets.

Preventing Tax Seizure

The best way to prevent the IRS from seizing your property is to address your tax debt as soon as possible. Paying your tax liability in full will immediately halt collection actions; however, if that’s not feasible, there are alternative options. Setting up a direct debit installment agreement or making regular estimated tax payments can help you stay on track and demonstrate good faith to the IRS. If you’re experiencing economic hardship, you may qualify for Currently Not Collectible (CNC) status, which temporarily halts seizure and sale of seized property. It’s essential to follow proper procedures and maintain open communication with the IRS to avoid escalation. By proactively arranging an installment agreement or negotiating a resolution, you can protect your property and avoid the stress of IRS collection actions.

We will do everything possible to remove a tax lien on your property and negotiate a favorable resolution. Resolving your tax problems may involve setting up an installment agreement or payment plan to satisfy unpaid tax debts. We can help you request an offer in compromise to settle for less than what is owed if you qualify, file tax returns to reverse trumped-up assessments from returns prepared by the IRS, or file a request for penalty abatement. If your property has already been seized, you can submit a release request to the IRS to have your seized assets returned. In some instances, tax liens can be subordinated, allowing you to refinance your property and settle with the IRS.

If the IRS denies your release request, you have appeal rights and can use the Collection Appeal Program to challenge the decision.

Our tax professionals and Enrolled Agents will determine the best course of action that will be realistic, fair, and achievable for you. Alternative collection methods, such as a partial payment installment agreement or a direct debit installment agreement, may be available to help resolve your tax liability. Installment agreements are available to help taxpayers avoid future asset seizures. With a 93% success rate in Offer in Compromise, our team outperforms the rate of applications filed by individuals alone.

Bank Account Seizure: What You Need to Know

If your tax debt remains unpaid, the IRS has the authority to seize your bank accounts to collect what you owe. When the IRS seizes a bank account, it can withdraw funds up to the amount of your tax debt, potentially leaving you with little or no access to your money. Receiving a notice of intent to levy is a critical warning—contact the IRS immediately to discuss alternative collection methods, such as a payment plan or a partial payment installment agreement. Bank account seizure can cause significant financial hardship; therefore, it’s essential to address tax problems promptly. If you’re facing this situation, consider consulting a tax attorney to explore your options and protect your financial well-being.

Consequences of Tax Seizure

The impact of an IRS seizure can be far-reaching. When the IRS seizes property, it may sell it at a public auction, applying the proceeds to your tax debt. If the sale doesn’t cover the full amount owed, you could still be responsible for the remaining balance. Beyond the immediate loss of property, an IRS seizure can damage your credit score, making it difficult to obtain loans or credit in the future. The process can also disrupt your personal and professional life. If you are facing the threat of IRS seizure, it’s vital to seek help from a qualified tax attorney who can help you explore options for releasing the seizure and resolving your tax debt before further damage is done.

Redemption Rights: Reclaiming Your Seized Property

Even after the IRS has seized your property, you may have the right to reclaim it through a process known as redemption. To exercise your redemption rights, you must pay the full amount of your tax debt, including interest and penalties, within a specific period, typically 180 days from the date of sale. If you wish to redeem seized property, please contact the IRS as soon as possible and provide any required documentation to support your claim. Should the IRS deny your request, you have the right to appeal through a collection due process hearing or seek assistance from the Taxpayer Advocate Service. Acting quickly and understanding your rights can make all the difference in reclaiming your property and resolving your tax issues.