Mortgage lenders and banks secure payment on home loans by recording mortgage documents in the Office of the Recorder of Deeds in the county where the home is located. Mortgages are “secured loans” which create a mortgage lien on real estate. In the case of a mortgage, the collateral is the home. If payments stop, the lender can foreclose on the property to pay off the balance.
If you fail to pay your income taxes, the Internal Revenue Service or state taxing authority can file a tax lien document with the county recorders office where the real estate is located. A tax lien is a document filed by the government to alert the general public that you have an unpaid tax obligation. This lien can affect both your personal property and your real property. A federal tax lien on your property allows the IRS to put a hold on your assets to secure payment of the tax obligation.
A real estate lien is a powerful tool that allows the government to get their hands on your property when you fail to pay taxes. The IRS, files lien against your real estate so if you sell it, the IRS will get paid out of the sale proceeds.
A tax lien placed on your real estate is a legal claim to your real estate (home). An IRS real estate lien is typically the final step taken to collect unpaid taxes. Tax liens protect the IRS and ensure the taxpayer settles their financial obligations. Numerous attempts to collect the taxes should have already occurred prior to the IRS securing a lien against real estate.
If there is a federal tax lien on your home, you must first satisfy the lien before you can sell or refinance your home. There are multiple ways to remove a federal tax lien from a home. The easiest option is to settle the matter with the IRS by paying the outstanding tax obligations or agreeing to a payment plan.
My job as a tax attorney is to analyze your case to determine what you owe the IRS and then help you settle your tax obligations with the IRS.
NEED TAX RELIEF?
Have you received a notice from the IRS, or if you have years of unfiled tax returns, reach out to our office. We’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Click here to schedule your no cost consultation.
Jace Kentner
Tax Attorney
573-708-7870
jace@kentnerlaw.com
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