When it comes to tax obligations, the Internal Revenue Service (IRS) is relentless in ensuring that individuals and businesses meet their responsibilities.

One of the tools the IRS employs to recover unpaid taxes is the tax lien. In this post, brought to you by Charles Young, CPA, a Certified Tax Resolution Specialist in Rochester, we’ll delve into the intricacies of the IRS lien and its implications.

What is an IRS 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 an IRS Lien Affect Rochester Taxpayers?

Reputation Impact: An IRS lien is a public record. For professionals in Rochester, 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 Rochester 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 Rochester 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 an IRS Lien in Rochester with Charles Young, CPA:

Taxpayer struggling with a tax lien have a few options including:

Pay the Debt in Full: The most straightforward way to get rid of an IRS Lien in Rochester 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. Charles Young, CPA, with expertise as a Certified Tax Resolution Specialist, can guide you through this process.

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. Seek guidance from Charles Young, CPA, to navigate this option effectively.

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 Rochester 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 Rochester, consider seeking advice from Charles Young, CPA, a trusted Certified Tax Resolution Specialist, who can guide you through the resolution process.