A lien is a legal claim against real property filed in a county court house.
A levy is the action of taking an asset (wages, bank account, etc.) to satisfy payment of a debt.
A subordination is getting the IRS to allow another creditor a higher collateral security position in your assets.
If you get a levy notice, follow the procedures for contacting the issuer and resolving the matter.
The IRS will file a lien to protect their interests against you selling the property to a third party. For the most part there isn’t much you can do about it. The IRS maintains that it has a right to protect their interests.
I can be of great help resolving lien, levy, and subordination problems. Call me now at 713-774-4467!
Removing IRS Liens
A good source for detailed information for a lien subordination is IRS Pub 764. Do a Google search and download a copy. It has a great section on how to prepare the application and what to do afterward.
Reasons the IRS will give you a subordination:
- a) You can offer approximately 3 times the value of your liability as collateral, or you can buy an insurance bond for approx. 3 times the liability.
- b) You can show that it will be easier for the IRS to collect more money by doing the subordination, like getting all the proceeds on the sale of your house, for example.
I have received approval for several subordinations depending on the circumstances. The following points should be helpful for your success.
You should acknowledge that you could and probably should have stopped this much earlier in the collection process. Understand that the IRS is not going to be sympathetic to your concerns about how tough it will be to successfully conduct your business. The IRS puts a lien on to protect them against 3rd party creditors getting your assets before they do. So why would they be willing to give up their creditor protection? Their general policy is not to remove or subordinate IRS tax liens (or levies) unless you fit one of their acceptable categories.
