A tax lien is a claim issued against a person or a business because the taxing authorities believe that you or your business have neglected or refused to pay a tax obligation after a demand for payment has been made. Once this demand for payment has been made, a tax lien is filed to secure the government’s interest or to capture unpaid taxes that are owed. A tax lien is attached to a person or to a business when the taxpayer is notified of a tax debt and the tax liability is not paid in full within ten days of notifying the taxpayer.
Tax liens are filed with the county clerk’s office in which the taxpayer lives, owns property, or owns a business. Once filed, it becomes part of the public record. With respect to a federal tax lien, the taxpayer is also notified that they have a right to a hearing at which time the taxpayer can dispute the legitimacy of the filing. If the federal government’s claim stands, the taxpayer has appeal rights in U.S. Tax Court or a Federal District Court.
In the event that the tax lien is valid for a tax owed, this issue can reflect negatively on the taxpayer’s credit report for up to ten years which could seriously undermine the taxpayer’s ability to borrow money.
Although Clear Creek knows how debilitating a tax lien can be on your personal or business credit, we will do all that is possible to remove this lien. We also understand that there are other factors that must be addressed to prevent more tax liens from being filed against you or your business. If we uncover that a tax is owed and that this Notice of Tax Lien was issued in accordance with administrative procedures, then we will go to work resolving this tax debt issue, and not waste precious time and resources battling an issue with the federal government that cannot be won.
If we determine the lien is valid, there are several strategies that we employ to nonetheless remove tax liens. Again, once we are certain that the laws were followed accurately, we can either file an Offer in Compromise to satisfy the debt ‘for pennies on the dollar’ or move forward with formalizing an Installment Agreement depending on your financial condition. Both of these strategies can be used as a basis for negotiating with the government to remove tax liens.
We can also negotiate to have tax liens removed if the withdrawal of the tax lien will facilitate the collection of the tax liability, or it is agreed that the removal of the tax lien is in the best interest of the government and the taxpayer.
Clear Creek is also experienced in ‘lien subordination.’ Put another way, we know how to subordinate the government’s lien position to that of the taxpayer’s mortgage company so equity from this refinancing can be extracted to pay down a tax liability. Clear Creek knows how to settle tax debts which is the first step in the removal of a tax lien.