If the IRS has placed a lien on your property, you may be concerned. You might worry that they will seize your property or take money out of an account without notice. While a lien does not mean that the IRS will seize your property, it does mean that they have a legal claim against your property or financial assets. There are several ways to remove a tax lien. While paying off tax debt in full will remove a lien, this is not always an option. For many people, tax lien subordination can help them reduce their worries about asset seizure. This option means that another creditor can move ahead of the IRS’s interest in a property. This process can be complicated, but at Solvent Tax Relief, we can tell you if tax lien subordination is the right option for you and your specific tax debt situation.
Contact our team at 800.985.9426 to learn more about tax lien subordination and other agreements to resolve your tax debt.
What Is Tax Lien Subordination?
If there’s a tax lien placed on your property, you are unable to sell it or refinance it. Through a tax lien subordination, the IRS will allow another creditor to move ahead in priority. What does this mean? If you have a mortgage on your home, there’s a creditor who has a security interest in the home. They have a right to foreclose on it if you do not make payments.
An IRS tax lien means that the IRS has priority on that property. Due to the tax lien, you may not be able to refinance or get a second mortgage which could potentially help you pay off your tax debt. However, a tax lien subordination can allow another creditor to move ahead of the IRS. While the lien will still be in place, you might be able to get a loan or refinance.
Some benefits of tax lien subordination include the following:
- You can open a new line of credit
- You may be able to receive a loan
- You can refinance in order to lower monthly mortgage payments
Why would the IRS want to issue a tax lien subordination? The IRS is primarily interested in receiving payments for tax debt as soon as possible. If lien subordination is in their best interest, they may be willing to allow it. For example, if refinancing gives you several thousand dollars in equity, the IRS will want to receive those funds. This can also benefit you as you might be able to refinance for a lower monthly payment.
How to Request a Tax Lien Subordination
If you think a tax lien subordination could help your financial situation, contact Solvent Tax Relief today. Our tax professionals are experienced in helping individuals find the best possible outcome for their tax debt situation. We will communicate with the IRS on your behalf. If a federal tax lien subordination could help you pay off your tax debt, it’s likely the IRS will agree to it. Our tax professionals will collect all the necessary information and file the correct forms to request a tax lien subordination.
Reach Out to Solvent Tax Relief
If you’ve received notice that the IRS is placing a lien on your property, don’t wait to reach out for help. Penalties and interest can accrue and cause your tax debt to grow. Solvent Tax Relief will work to understand your unique situation and investigate ways to resolve your tax debt. In many cases, our clients end up paying less than they originally owed. Through our tax settlement, tax negotiation, tax consultation, and tax preparation services you can feel confident in all of your dealings with the IRS. Reach out to our team today at 800.985.9426 to get started.