An IRS Tax Lien is often what drive taxpayers to finally seek help for their IRS Problems. The IRS files the Lien to protect their interests (primarily to protect against you completely discharging their debt in bankruptcy and keeping your exempt property) and a Federal Tax Lien applies to all of your property (real & personal) where ever it may be.
An interesting side note to a Federal Tax Lien applying to all of your property is that if it is not filed in the same county as your real property (meaning your real estate) it will not encumber that real estate (meaning you should not have title problems with it and you should be able to sell it without it being subject to the lien).
Now…nothing I say here should be construed as legal advice and you SHOULD seek counselfrom an IRS attorney before making any decision such as selling property which MAY be encumbered with a IRS Tax Lien.
The primary role that a Federal Tax Lien has is that it ruins your credit and SOMETIMES shocks people into action to try to fix their situation. They can sometimes be withdrawn (see my video on the IRS Fresh Start Initiative for more information.) They are supposed to be automatically released if you pay the liability; if you have an accepted Offer in Compromise or if the Collection Statute of Limitations expire. I can tell you from personal experience that that doesn’t always happen but sometimes the system works the way it’s supposed to and the Federal Tax Liens are released. If you file a bankruptcy and you have NO equity in assets then bankruptcy counsel can often negotiate the release of your Federal Tax Lien as well.
If you have questions about Federal Tax Liens or anything related to IRS Problems, Call us at (888) 438-6474.