Tax Lien Relief
The Internal Revenue Service (IRS) and the South Carolina Department of Revenue (SCDOR) have the ability to file a Notice of Tax Lien against taxpayers that have unpaid taxes.
A tax lien is one of the arrows in taxing authorities tax collection quiver. Tax liens give the IRS and SCDOR a legal claim to the taxpayer’s property as security for the tax debt. The IRS may file a Notice of Federal Tax Lien only after it assesses the liability, sends a Notice and Demand for Payment, and the taxpayer neglects and/or refuses to render full payment of the debt within 10 days of notification.
By filing the Notice of Federal Tax Lien, the IRS effectively gives the taxpayer’s creditors public notice that it has a claim against the taxpayer’s property. This is important in determining creditor priority in various situations, such as in bankruptcy proceedings. The lien attaches to both the taxpayer’s property and rights to property.
The IRS tax lien generally remains in place until the taxes are paid or the collection statute expires. However, there are other ways to get a tax lien removed or subordinated. Tax liens will harm the taxpayer’s credit rating, thereby impairing the taxpayer’s ability to secure a credit card, sign a lease, or purchase a new home or vehicle.