If you have had the experience of a state or federal tax lien on your home, we know this can be quite stressful. It can be difficult to find answers, especially with so many different resources online and elsewhere. So you have a tax lien on your home; what do you do now?
Typically, you need to owe more than $5,000 before the IRS will put a federal tax lien on your home. You typically need to be at least 10 days late on the amount you owe with the IRS perceiving a threat to their ability to collect the debt. While these are general procedures, the IRS may file the lien up to several years after the debt is owed and not paid. California can file a tax lien on your home or any other real or personal property owned in the state.
A California state tax lien is in effect for 10 years from the date of filing the lien. The IRS can not only apply a tax lien to your home for 10 years, but can also renew it for another 10 years and even keep the lien attached indefinitely.
A lien allows the state or IRS – depending on which government entity has filed the lien – to foreclose on your property, regardless of whether you are late on your mortgage or not.
If you pay your tax debt in full, you can request and obtain a lien release from the entity who applied the lien. Often times, even a payment plan with the IRS will allow you to receive a lien release.
Your Los Angeles tax lien expert Charles M. Green can assist you in the process of a tax lien applied by the state of California or the IRS.