HOW TO HAVE AN IRS LIEN SUBORDINATED IN HARTFORD, CT

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Once the IRS has filed its lien to secure its interest, many taxpayers come to our office trying to sort out How to Have an IRS Lien Subordinated in Hartford, CT. 

There are a number of options for dealing with the IRS Lien, including instances where taxpayers may be able to borrow money from a third party and want to know How to Have an IRS Lien Subordinated in Hartford, CT.

In instances where a third party lender may be willing to lend money to the taxpayer, and where the taxpayer can demonstrate that by allowing the third party lender to move ahead of the IRS in priority the IRS’ ability to collect the taxpayer’s debt is improved, then the IRS will agree to “subordinate “ its lien to that of the third party lender.

So how can IRS Collection be improved by allowing another lender to move ahead of them in the list of priority creditors?

There are a number of ways that IRS Collection is enhanced by subordinating their lien to another creditor, including:

• ·      The lender will refinance the property allowing the taxpayer to obtain cash and pay down their IRS tax debt, and
• ·      The refinance will pay for improvements to the property, which will increase the value and therefore allow the IRS to potentially collect more later.

In general, a request for lien subordination with the necessary information to make our case is filed with the IRS Lien Unit, and once the particulars are negotiated the IRS will give the taxpayer a letter stating that they will subordinate their lien upon the receipt of whatever closing statements and/or cash it expects from the closing.  After the IRS receives what it needs it will send the subordination to the taxpayer to file in the land records.

For more information on IRS liens see our articles “How to deal with an IRS Lien in Hartford, CT” and “Discharging the Federal Tax Lien in Hartford, CT”.

If you should have any questions or concerns about How to Have an IRS Lien Subordinated in Hartford, CT, I would be happy to help.  Please feel free to contact me anytime at (860) 657-9040 or e-mail me at egreen@convicerpercy.com.

Eric L. Green, Esq.

Tax Counsel

Convicer & Percy LLP

Phone: (860) 657-9040

E-Mail: egreen@convicerpercy.com

Website: www.convicerpercy.com

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