What is a tax lien?

If you owe back taxes, the IRS gains a tax lien on all your assets.

The tax lien attaches to all property and rights to property (real or personal, tangible or intangible), title and interest of the taxpayer.

Once the IRS has a tax lien on all of a taxpayer’s assets, they may enforce that tax lien by administratively levying your assets. A tax lien is filed by the IRS to protect government’s interests. Our in-depth knowledge of the tax procedures helps to check if all the administrative requirements for lien filing were met. We can also try to convince the IRS that releasing or withdrawing the lien is in the best interests of the government and that it would facilitate the payment of the tax due. In appropriate circumstances, we can negotiate for a subordination of the tax lien. Furthermore, if you engage us in the early stages of the tax controversy, we may be able to prevent filing of tax liens through negotiations with the IRS.

How do tax lien affects you?

Talk to a tax professional on how to avoid a tax lien on your assets.

Paying your tax owed in full is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid the tax owed.

When conditions are in the best interest of both the government and the taxpayer, other options for reducing the impact of a lien exist.

  • Assets — A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.
  • Credit — Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.
  • Business — The lien attaches to all business property and to all rights to business property, including accounts receivable.
  • Bankruptcy — If you file for bankruptcy, your tax owed, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.

You can avoid a federal tax lien by simply filing and paying all your taxes in full and on time. If you can’t file or pay on time, don’t ignore the letters or correspondence you get from the IRS. If you can’t pay the full amount you owe, payment options are available to help you settle your tax owed over time.


Client Testimonials

Here’s what our clients are saying about their experience.

Andy Yu is the best CPA in Southern California by far. His past experience really shines when presenting our options and creating a strategy in resolving the tax dispute. His insight on the audit process delivered a prompt resolution.

I would highly recommend Andy Yu to anyone who is dealing with an IRS tax audit. He was very professional and was able to reduce my tax owed for a fraction. You have earned a client for life.

Andy Yu is passionate about helping his clients. He identified all the mistakes and swiftly resolved my tax disputes. Thank you Andy!