IRS Notice of Federal Tax Lien

A Notice of Federal Tax Lien (NFTL) is an encumbrance that establishes a legal claim by the government. Generally speaking a tax lien gives the IRS a claim against everything you own or may acquire until the amount the IRS claims you own is satisfied. This includes all assets from home and car all the way to the rusted bicycle in your backyard. It does not result in the physical seizure of your property. A levy, on the other hand, allows the IRS to actually seize wages, cash, or property.

The Notice of Federal Tax Lien also technically attaches to your wages, money in you bank accounts, your retirement accounts, and even the cash in your wallet. The lien will attach to any asset you have or may acquired while it is still in force unless that asset has received a Certificate of Discharge excluding it from the lien. The Filing of a Notice of Federal Tax Lien is usually the First Step the IRS takes when launching an aggressive collection campaign – in Your Name! Once filed it give the right to move forward with Enforced Collections, such as levies on bank accounts, property, or even IRA’s and garnishments on wages or even Social Security benefits. If you have received a Notice of Federal Tax Lien, Do Not Wait – Contact Us today!

A Federal Tax Lien also impacts your credit score, since it shows up on your credit report. Therefore, the tax lien can impact your ability to obtain loans, rent an apartment, and can even impact your insurance rates and ability to obtain employment if you are a job seeker.

In most cases, a tax lien will jump ahead of many other liens against your property after a 90 to 180 day period, unless a particular piece of property is used as collateral for a loan. For example, a tax lien does not jump ahead in priority position over a car loan or a first, second, or third mortgage against your home. It will, however, usually jump ahead of, say, a mechanic’s lien against your home.

You may have circumstances where having the lien released would be of benefit to helping you resolve the tax situation. There are three types of lien releases available to a taxpayer that may help you resolve tax liabilities with the IRS:

• Certificate of Discharge

• Lien Subordination

• Lien Withdrawal

Prodigy Financial Services Group is a Full Service Tax Resolution Firm specializing in helping Individuals Nationwide Reduce and Resolve back Tax Issues – Fast. Prodigy is owned and Operated by IRS Enrolled Agents. Our No-Nonsense, Common Sense approach to Tax Relief and Tax Problem Solving has helped Thousands of Americans all across the country save money while reducing and even eliminating their back tax issues. For more information on Tax Liens or Tax Resolution Options – Contact Us Today.