Tax Talk

Question: I received a Notice of a Federal Tax Lien from the IRS for unpaid taxes, and I’m scared and don’t know what to do. How do I get this situation resolved?

Answer: A Notice of Federal Tax Lien (NFTL) is a public record and is generally filed with the County Recorder where you reside. It’s a formal notice to all your creditors that the IRS has a secured interest in your real and personal property that you own and acquire in the future. A federal tax lien is usually the “kiss of death” however, there are four ways to resolve a federal tax lien – You can request a Lien Subordination, a Lien Discharge, a Lien Release, or a Withdrawal of a federal tax lien if you qualify.

A federal tax lien will make it very difficult, if not impossible, for you to purchase or sell a home, vehicle, or other property on credit. It may also prevent you from accessing the equity in real property you may have built up over the years. However, the IRS has several different options that deal with resolving an NFTL if you qualify. One of these is to apply for a Withdrawal of the lien. Winning a Withdrawal of an NFTL is as if it never happened in the first place! The IRS will consider this if the Lien was filed prematurely or was not in accordance with IRS procedures, which happens a lot! The good news is that you generally won’t have to meet or even speak with the IRS while retained by a tax professional. It’s important to consult with a tax professional to see what Lien relief programs you may be eligible for before the IRS starts seizing your property. A good tax professional can help protect what you already own and preserve your rights!

Mark Diehl is the founder and president of Diehl CPA LLC and a Certified Public Accountant licensed in Alaska. He has a Bachelor of Science and a Master of Science degree in Accounting from Western Governors University. Mark has previously worked with the Minnesota Department of Revenue as a tax auditor, so he knows the audit process very well. Diehl CPA is Alaska's expert in Tax Negotiation and Mediation.