Damage to Your Credit
A federal tax lien is a public record that appears on your credit report. It can significantly lower your credit score and make it difficult to obtain loans, credit cards, or mortgages.
IRS Tax Lien Resolution
IRS Tax Liens: How to Resolve Federal & State Tax Liens
A federal tax lien can damage your credit, prevent you from selling property, and make it difficult to obtain financing. Our experienced Utah tax attorneys can help you resolve your tax lien.
Understanding IRS Tax Liens
What is a Federal Tax Lien?
When you fail to pay a federal tax debt, the IRS can file a federal tax lien against your property. This lien is a legal claim that protects the government's interest in your property and assets. The lien attaches to all property you currently own or may acquire in the future, including real estate, vehicles, bank accounts, and investments.
A federal tax lien can have serious consequences for your financial life. It appears on your credit report, makes it difficult to sell or refinance property, and signals to other creditors that the IRS has a claim against you. If the lien is not resolved, the IRS may eventually seize your property to satisfy the tax debt.
At Michelle Turpin, P.C., we have extensive experience helping Utah residents and businesses resolve federal and state tax liens. Our attorneys can help you understand your options and develop a strategy to get the lien removed as quickly as possible.
Consequences of a Federal Tax Lien
Difficulty Selling Property
A tax lien makes it extremely difficult to sell real estate or other property. Most buyers and lenders will not proceed with a transaction when there is a lien on the property.
Asset Seizure Risk
A tax lien is a legal claim against your property. If the lien is not resolved, the IRS may seize your assets — including your home, vehicle, bank accounts, and other property.
Business Impact
For business owners, a tax lien can disrupt operations, prevent you from obtaining business credit, and even jeopardize your ability to stay in business.
Wage Garnishment
When the IRS has a lien, it may also use other collection tools, including wage garnishment and bank levies, to satisfy the tax debt.
Inheritance Issues
A tax lien attaches to all of your property, including property you may inherit or receive as a gift. This can complicate estate planning and inheritance matters.
Don't Let a Tax Lien Destroy Your Financial Future
A tax lien can have long-lasting consequences for your credit, your ability to buy or sell property, and your overall financial well-being. The longer the lien remains in place, the more damage it can do.
Our experienced tax attorneys can help you resolve your tax lien and get back on track financially. Call 801-685-0552 today for a consultation.
Options for Resolving a Tax Lien
There are several ways to resolve a federal tax lien. The best option depends on your financial situation, the amount of tax owed, and your long-term goals. Our attorneys can help you evaluate each option and choose the one that makes the most sense for you.
Payment in Full
Paying your tax debt in full will result in the lien being released within 30 days of payment. This is the simplest and quickest way to resolve a tax lien.
Installment Agreement
An installment agreement allows you to pay your tax debt over time. After several months of consistent payments, you may qualify for lien withdrawal under the IRS lien withdrawal program.
Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount owed. Once the offer is paid, the lien will be released.
Lien Discharge
A lien discharge allows you to sell or refinance specific property while the underlying tax debt is being resolved. This can be a useful tool for taxpayers who need to liquidate assets.
Lien Subordination
A lien subordination allows another creditor to take priority over the IRS lien on specific property. This can make it easier to obtain financing or refinance existing debt.
Lien Withdrawal
In certain circumstances, the IRS will withdraw a tax lien. This is different from a release — the lien is removed from public record as if it never existed.
Our Tax Lien Resolution Process
When you hire Michelle Turpin, P.C. to resolve your tax lien, we follow a proven process designed to achieve the best possible outcome. We handle every step so you can focus on getting your life back on track.
1
Case Evaluation
We review your tax situation, including all liens, levies, and penalties, to determine the best resolution strategy.
2
IRS Communication
We handle all communication with the IRS on your behalf, protecting you from direct contact with collection agents.
3
Resolution Strategy
We develop a customized plan to resolve your tax debt and remove the lien, considering your financial situation and goals.
4
Negotiation & Settlement
We negotiate with the IRS to obtain the best possible outcome, whether through an installment agreement, offer in compromise, or other resolution.
5
Lien Release
Once your tax debt is resolved, we ensure the lien is properly released and assist with credit report remediation if needed.
State Tax Liens in Utah
In addition to federal tax liens, the Utah State Tax Commission can also file liens against your property for unpaid state taxes. State tax liens work similarly to federal tax liens and can have similar consequences for your credit and financial well-being.
Our attorneys can help you resolve both federal and state tax liens. We have experience negotiating with the Utah State Tax Commission and can help you find the best resolution for your state tax issues.
Frequently Asked Questions About Tax Liens
What is a federal tax lien?+
A federal tax lien is a legal claim by the IRS against your property when you neglect or fail to pay a tax debt. The lien protects the IRS's interest in your property, including real estate, personal property, and financial assets. It is created automatically when the IRS assesses your tax liability and sends you a Notice and Demand for Payment.
How does a tax lien differ from a tax levy?+
A tax lien is a claim against your property that secures the tax debt — it is the legal right to take your property if you do not pay. A tax levy is the actual seizure of your property to satisfy the tax debt. The lien comes first; the levy is the collection action that follows.
Can I sell my home if I have a tax lien?+
It is extremely difficult to sell property with a tax lien because most buyers and lenders will not proceed. However, you may be able to obtain a lien discharge, which allows the sale of specific property even with the lien in place.
How long does a federal tax lien last?+
A federal tax lien remains in place until the tax debt is paid, the statute of limitations on collection expires (generally 10 years), or the lien is otherwise resolved. The lien is automatically released 30 days after you pay the debt in full.
Can a tax lien be removed from my credit report?+
Yes, in some circumstances. The IRS may withdraw a lien if you enter into an installment agreement and meet certain requirements, or if you can demonstrate that the lien is creating economic hardship. Lien withdrawal removes the lien from public record.
How much does it cost to resolve a tax lien?+
The cost depends on the resolution method you choose. If you can pay in full, you will pay the tax debt plus any accrued interest and penalties. Other resolution options may reduce the total amount owed but require professional representation.
Should I hire an attorney to resolve my tax lien?+
Yes. Tax lien resolution involves complex legal and procedural issues. An experienced tax attorney can negotiate with the IRS, protect your rights, and help you find the best resolution for your situation.
Why Choose Michelle Turpin, P.C. for Tax Lien Resolution?
With nearly 40 years of experience representing taxpayers before the IRS, Michelle Turpin, P.C. has the knowledge and expertise to resolve even the most complex tax lien issues. Our attorneys have helped countless Utah residents and businesses remove tax liens and get back on their financial feet.
We understand the stress and anxiety that comes with a tax lien. That's why we take a personalized approach to every case, working closely with you to understand your situation and develop a resolution strategy that meets your needs.
Our team includes attorneys with diverse backgrounds in tax law, including former government tax attorneys and Big 4 accounting firm veterans. This depth of experience allows us to handle tax lien issues at every level, from initial negotiations with the IRS to appeals and litigation in Tax Court.
Get Started Today
If you have a tax lien and need help resolving it, don't wait. The longer the lien remains in place, the more damage it can do to your credit and financial future. Contact our office at (801) 685-0552 or schedule a consultation online to learn how we can help.
Our Legal Team
Over 100 years of cumulative tax law experience. Our team has the expertise to resolve your tax lien.
Spencer Evans
Attorney
Spencer Evans brings nearly 20 years of exclusively practicing tax law. He started his career as a state tax attorney working for a state taxing agency and has significant experience working as a tax attorney for Big 4 accounting firms.
Credentials and Expertise:
- Juris Doctor, Florida State University School of Law (2005)
- Admitted to practice before Arizona, Utah, Federal District and U.S. Tax Courts
- Former government tax attorney
- 13+ years at PwC and Deloitte
- Nationwide sales tax audit defense specialist
Michelle Turpin
Attorney
With nearly 40 years of experience representing taxpayers before the IRS and state taxing authorities, Michelle Turpin is recognized as one of Utah's leading tax controversy attorneys.
Credentials and Expertise:
- Juris Doctor, University of Utah School of Law (1989)
- LL.M. Masters in Taxation, University of San Diego (1990)
- Former intern, IRS Office of District Counsel
- Admitted to practice before Utah, Federal District Court and U.S. Tax Courts
- Specializes in federal and state tax controversy, criminal tax defense, and complex tax planning
Ready to Remove Your Tax Lien?
Don't let a tax lien continue to damage your credit and financial future. Our experienced Utah tax attorneys can help you resolve your tax lien and get back on track.