Helping Taxpayers With Federal Tax Liens in Phoenix

What is an IRS Lien / Federal Tax Lien?

An IRS lien is a legal claim against a taxpayer’s property when they neglect or fail to pay a tax debt. This claim secures the government’s interest in all of the taxpayer’s property, including real estate, personal property, and financial assets. It’s essential to understand that a lien is not a levy. While a lien makes a claim against assets, a levy actually takes the property to pay the tax debt.

How Does a Federal Tax Lien Affect Phoenix Taxpayers?

Reputation Impact: An IRS lien is a public record. For professionals in Phoenix, this can have a significant impact on their reputation. Clients, colleagues, and others in your industry might view you differently if they discover you have a tax lien, potentially affecting business relationships and opportunities.

Property Sale Limitations: If you’re a resident of the Phoenix area and have an IRS lien placed against your property, selling it might become challenging. Even if you do find a buyer, the IRS Lien will need to be satisfied from the sale proceeds before you see any money.

Business Implications: If you run a business in Phoenix and have an IRS lien, it can affect your business operations. The IRS can make claims against business property, accounts receivables, and even business bank accounts.

How to Address a Federal Tax Lien in Phoenix with Hockett Tax:

Taxpayers struggling with federal tax liens in Phoenix have a few options including:

Pay the Debt in Full: The most straightforward way to get rid of an IRS Lien in Phoenix is to pay the tax debt in full. Once the payment is processed, the IRS will release the lien within 30 days.

Installment Agreement: If you can’t pay the debt in full, consider setting up an installment agreement with the IRS.

Offer in Compromise: This is an agreement between the taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. If the IRS accepts your Offer in Compromise and you adhere to all the terms, the lien will be released.

Certificate of Discharge: In specific scenarios, you can get your property discharged from a lien. This means the IRS removes the claim from the particular asset, allowing you to sell it free from the lien. However, this doesn’t mean the lien is removed entirely; it still applies to other properties you might own.

An IRS Lien in Phoenix can have far-reaching implications, especially for professionals concerned about their reputation. It’s crucial to address tax debts proactively to avoid the complications and challenges that come with a lien.

If you find yourself facing an IRS lien in Phoenix, consider seeking advice from Hockett Tax, a trusted Tax Resolution Specialist, who can guide you through the resolution process.