HOW TO DEAL WITH AN IRS LIEN IN HARTFORD, CT

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Education & Training with Tax Rep LLC

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A question that frequently comes up is How to Deal with an IRS Lien in Hartford, CT?

IRS Lien Basics

When taxpayers file a tax return the IRS will process that return and assess the tax liability based upon the information provided by the taxpayer.  They will then apply the taxpayer’s payments and withholding against the liability.  Ten days after the date of assessment a lien arises automatically by statute in favor of the IRS.

This lien, referred to as a hidden lien because there is no public notice given by the government, attaches to all of the taxpayer’s property, including property acquired after the fact by the taxpayer.  For taxpayers trying to sort out how to deal with an IRS lien in Hartford, CT, this hidden lien can often cause problems.

The so called “hidden lien” does not protect the government against third party lenders who have given value (ie. loaned money or extended credit to the taxpayer) and have no notice of the lien.  Therefore, to protect its interest against other third party creditors, the IRS will often file a “Notice of Federal Tax Lien” with the secretary of the state, the town hall where the taxpayer resides and in the land records of the property where the taxpayer resides, even if they are not the actual owner.

The Notice of Federal Tax Lien provides notice to all third party creditors that money is due and owing to the IRS.  Upon the filing of a Notice of Federal Tax Lien the taxpayer will be given an opportunity to challenge the lien at a Collection Due Process (CDP) hearing.  However, unless the taxpayer can either show the tax liability was paid, the lien filing was a mistake by the government or the taxpayer has another asset to offer to secure the tax debt, the taxpayer is unlikely to prevail in the hearing.

For taxpayers learning how to deal with an IRS lien in Hartford, CT there are a number of options, including:

 

 

  • ·      Discharge of the lien (see my blog entry on Discharging IRS Tax Liens in Connecticut)
  • ·      Subordination of the tax lien (see my blog entry on Subordinating IRS Tax Liens in Connecticut)
  • ·      Removal of the lien (see my blog entry on Removing IRS Tax Liens in Connecticut)

 

 Once the lien is filed, the taxpayer will have an opportunity to have the lien discharged or subordinated to a new lender. 

If you should have any questions or concerns about how to deal with an IRS lien 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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