When the IRS assesses a federal tax liability against a taxpayer, a lien in favor of the United States arises upon “all property and rights to property of the taxpayer”. This is the broadest possible encumbrance, and demonstrates Congressional intent that the IRS has maximum means of satisfying its outstanding tax claims against taxpayers. The Federal tax lien is the foundation upon which all IRS collection activity is founded – the IRS can only seize property subject to the Federal tax lien. Further, when the IRS files a Notice of Federal Tax Lien against the taxpayer it puts the world on notice of the taxpayer’s indebtedness to the IRS, as well as it perfects the lien against certain 3rd party creditors of the taxpayer. Critically, it has serious financial consequences to the taxpayer. As such, it is imperative to the taxpayer to have the Federal tax lien released as soon as possible.
The IRS must release a Federal tax lien within 30 days of when the federal tax liability is fully paid or becomes legally unenforceable or the IRS accepts a bond for payment of the liability. Upon release of the Federal tax the taxpayer’s property and rights to property are no longer subject to the federal tax lien.
Our Law Office will work with you to have the Federal tax lien as soon as possible.