If the IRS has attached a Federal Tax Lien to your property, you can still retain ownership, but you will be unlikely to refinance the property or sell it without first removing the lien. The simplest way to remove a tax lien is to pay off your tax debts, but that is not typically a viable option for 99% of the taxpayers who owe past due taxes. Rest assured that there are other options available to you to address the situation: petitioning the IRS for a Certificate of Lien Subordination or Lien Discharge.
A Certificate of Lien Discharge will completely remove the lien from your property so it may be sold to a third party free of any further entanglements from the Federal Tax Lien. When a lien is discharged it does not remove your tax debt; you must still pay your back taxes, penalties, and interest. However, by taking this step, taxpayers have been relieved of a financial burden that places them in a more favorable financial condition, often allowing the taxpayer to begin addressing the past due taxes owed in some manner.
Golden Lion Tax Solutions works with both business clients and individuals to petition the IRS for Certificates of Lien Discharge or Subordination. We will be happy to discuss this with you and explore the options available in order to determine the most appropriate approach to resolve your tax issues.
When you have a Federal Tax Lien registered that attaches to your property, it takes priority over any other loans attempted after the lien was put in place. That means lenders may be unwilling to agree to a mortgage or refinancing option knowing that they will have a lower priority than the tax lien. However, it is possible to petition the IRS for a Certificate of Lien Subordination, which is an agreement granted by the IRS that allows your new creditor to be placed ahead of the recorded Federal Tax Lien. This doesn't remove the lien, it just means your new lender has higher priority.
A Certificate of Lien Subordination will not resolve your tax debt, but it can allow you to take out a loan, or refinance an existing one, which in turn may relieve some of the pressures of your financial condition and, perhaps, allow you to begin addressing the past due tax debt.
Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate resolution strategy to fit your situation.