A state or federal tax lien affects your claim to property as well as your overall credit profile. Government agencies can place liens on any property owned by delinquent filers, including real property like housing as well as vehicles, securities (stocks & options), and other holdings.
If a business is in your name — or if the revenue agency determines that the registered business operates primarily as an “alter ego” of a sole proprietor — then the agency can place a lien on business property, as well, potentially including accounts receivable.
Once a lien is in place, it will be almost impossible for the asset owner to sell the asset, transfer it, or otherwise make significant changes requiring full possession. Not only that, but the lien can affect credit status, especially if the asset is to be considered as part of a borrower’s overall net value.
Instant Tax Solutions is here to assist anyone who is struggling with a current or impending lien. We have extensive knowledge of both federal and state procedures for removing tax liens, and we are prepared to help you do everything you can to seek the optimal outcome.
When you are ready to find out the solutions to your tax problems, call us today at (888) 363-8958 or contact us online to schedule your confidential consultation with a tax professional near you.
Why Work With Our Portland Federal & State Tax Lien Removal Service?
Navigating some IRS processes is relatively easy, but having a tax lien removed is not one of those. Unlike levies and other direct seizures of assets, a lien (in theory) only prevents the sale or transfer of the property in question so that the IRS (or Oregon Department of Revenue) may be able to collect on the value of any sale — or, at very least, ensure that the asset isn’t pulled away from their grasp in case they do decide to levy.
Because of this status as a placeholder or “dibs” on any revenues owed that could come from the asset’s sale, the IRS and Oregon DOR are less bound to remove a lien when the property owner wants to allege a hardship. In many cases, the only viable way to remove the lien is to pay the back taxes owed.
You may also have other options, like discharge of property, subordination, or withdrawal of the lien. Otherwise, the lien is highly likely to remain in place so long as the debt is owed.
Instant Tax Solutions has extensive experience helping tax filers get liens removed and obtaining other forms of relief from the harsh penalties liens impose. We will help you:
- Perform a full financial accounting, including calculating the exact taxes owed
- Submit a disputed tax assessment, amended tax return (w/in 3 years), or appeal if we believe the lien was applied in error
- Help you examine all of your available options for mitigating or removing the lien
- Calculate your ability to pay and options for repaying via offer in compromise, installment plan, or other alternatives
- Work with you, the IRS, and the Oregon DOR to resolve any issues and work towards a mutually beneficial solution regarding your taxes owed
- Help you prepare for future tax obligations, ensuring you can work towards a tomorrow that’s not hampered by worrying or stress about tax issues
Understanding Your State Tax Lien vs. Federal Tax Lien
There are a few important distinctions when facing an Oregon state tax lien vs a federal tax lien. While both operate roughly the same way, Oregon tax liens are even harder to remove without paying your bill in full or otherwise settling with the DOR.
Oregon also issues Uniform Commercial Code (UCC) liens, which are placed on properties of businesses with outstanding tax obligations and enable them to seize the business property, much like a federal levy would.
Whether your property has a state or federal tax lien on it depends on the amount you owe with each entity, the nature of the asset, and whether the property in question has pre-existing liens on it. A single asset can have multiple liens on it, including both a state and federal lien, as well as other types of liens, such as a judgment lien.
Instant Tax Solutions can help you understand exactly what properties have a lien on them, the justification for each one, and what you can do to get them removed through our federal & state tax lien removal help.
What Are My Options for Having a Federal Tax Lien Removed?
There are three main options the IRS offers for having federal tax liens mitigated so that they may not affect the sale or transfer of the property or to reduce the impact the lien has on your credit:
- Discharge of property
- Subordination of the lien
- Withdrawal of the lien
Discharge of Property
Federal tax liens can apply to a broad range of properties at once. Filers can request a discharge of property to have a United States lien removed from a specific piece of property.
Often, this is done in connection with an immediate sale or transfer of the property. In cases of a sale, the proceeds of the sale can be immediately recouped by the IRS, per the agreement made dictating the terms of the discharge.
A discharge is also commonly granted when the remainder of the property affected by a lien equals or exceeds the total value of the debt held. Securing a lien can require both accounting and legal expertise, often necessitating the assistance of an experienced federal & state tax lien removal service.
Subordination of the Lien
This process basically puts the lien status on hold, often while creditors consider the owner’s credit readiness. For example, if the property owner is trying to secure a loan or mortgage, the creditor can act as if the asset is held normally, without a lien, when they calculate the amount of credit the person deserves.
The credit check effectively “subordinates” or comes before the lien goes into effect.
Withdrawal of the Lien
The Fresh Start Initiative, begun in 2011, allows certain eligible tax debt holders to have the public Notice of Federal Tax Lien removed, effectively meaning that the lien is gone as far as creditors and other parties are concerned. If you are otherwise in good standing with the IRS, including having been in total compliance over the last three years of filing and up-to-date on any current-year estimated payments, you can request to have the lien removed.
You can also request a lien removal if you enter into a direct debit installment agreement with the IRS and submit the first three payments on time, consecutively. To be eligible for this withdrawal, you must hold less than $25,000 in total tax liability and be a qualifying business or individual.
Others can request a withdrawal based on individual circumstances, including hardship, by submitting Form 12277, Application for the Withdrawal of Filed Form 668(Y). This form is extremely open-ended, so applicants should be encouraged to consult with a tax and/or legal expert to ensure that they are offering sound justification for their request.
Getting an Oregon State Tax Lien Removed
Oregon offers a few of its own options for having a state tax lien removed. Like federal tax liens, Oregon allows for a partial release of particular property affected by the lien.
You can also have a lien subordinated in order to have other creditors examine the property prior to the lien taking hold.
Unlike federal liens, Oregon law does not provide a consistent process for seeking withdrawal of the loan, but they may be willing to grant a request under specific circumstances and with the proper legal and financial justification.
How Is a Lien Different From a Bank Levy?
A tax lien is not an actual claim to the property itself, nor should it be considered as a seizure of the property. Instead, it is a claim to any proceeds made from the sale of the asset while also limiting the ability of the asset to be transferred or sold for under-market value.
A levy is an actual claim to the property, often prior to seizure. Federal bank and asset levies can possibly be delayed or prevented entirely with the right justification.
The state of Oregon may seize property affected by a lien under certain circumstances. If Oregon has placed a lien on a personal or business property of yours, it is vital to reach out to our tax professionals today to limit their ability to seize or sell the property.
Our Experienced Tax Professionals Are Here to Help
From helping property owners get tax liens removed to finding tax relief for those who owe more than they know how to repay, Instant Tax Solutions has built its reputation on problem-solving. We help you understand all available options and find the approach that’s best for you, given how much you owe and the other circumstances you face.
Find out more about how we can help with the removal of state and federal tax liens during your confidential consultation. Schedule your review with an experienced tax professional today when you call (888) 363-8958 or contact us online.