An action that gives the IRS authority to seize a taxpayer’s property if that taxpayer does not pay back taxes. The IRS can issue a levy against a taxpayer’s property, home or even bank account. A levy is usually used as a last resort by the IRS, therefore individuals should have plenty of warning and opportunities to settle tax debt before a levy is issued.
Whether a taxpayer does or does not own any property, IRS will issue a lien against their SSN to hinder them from purchasing, selling or transferring any property. A lien will effect their credit report. If the taxpayer is preparing an OIC and it is accepted, the lien will be released once the OIC payment terms have been satisfied. If not preparing an OIC, the lien will be released when the tax debt is either paid in full or the statute to collect the tax has expired. *The Internal Revenue Code of 1986 provides for a statutory lien of the Federal Government to be filed for a tax debt after a proper assessment, notice and demand, and a neglect or refusal to pay. Liens can be discharged or subordinated under special circumstances. **A Federal Tax Lien is formally recording in the appropriate public records office (county recorder, MENSE, Secretary of State (UCC) or US District Court) in order to establish priority over creditors, judgement lien creditors and other lenders.
Removal of a lien on a specific piece of property to allow for its sale or disposal.
Issued by IRS when a tax debt is fully paid or if the taxpayer can prove they are suffering from a financial hardship and are unable to provide for their familys health and wellbeing.
To set aside a lien temporarily to allow for a sale or refinance.