IRS Tax Lien Help From Licensed Tax Agents in Pasadena, CA
A tax lien can follow you into places you never expected, from a home sale to a refinance to a business loan application. Tax liens are oftentimes inevitable, especially if you cannot afford to pay the balance in full. They are also something you can manage, reduce, and eventually clear. At Fresh Start Tax Relief Services in Pasadena, our licensed tax agents help taxpayers understand their lien, limit its impact, and get it released or withdrawn. We are a women-owned business with decades of experience dealing with the IRS.
What a Federal Tax Lien Is
A federal tax lien is the government's legal claim against your property when you do not pay a tax debt. It arises automatically once the IRS assesses the tax, sends a bill, and the bill goes unpaid. It attaches to everything you own, including real estate, vehicles, and financial accounts, and to property you acquire later.
To make that claim public, the IRS files a Notice of Federal Tax Lien with your county or state. That filing alerts lenders and other creditors that the government has a claim. The IRS generally files one when a balance exceeds $10,000, although it can file at lower amounts.
A lien is not the same as a levy. A lien is a claim. A
tax levy is the actual seizure of money or property.
Release, Withdrawal, Discharge, and Subordination
There is more than one way to deal with a lien, and the right one depends on your goal.
Lien Release
A release ends the lien. The IRS generally releases a lien within 30 days after the tax debt is paid in full or the collection period expires.
Lien Withdrawal
A withdrawal removes the public Notice of Federal Tax Lien as if it had never been filed. It can be requested after the debt is paid. It may also be available while you still owe, for example when your balance is $25,000 or less and you have made three consecutive payments under a direct debit installment agreement.
Lien Discharge
A discharge removes the lien from a specific piece of property. It is commonly used when selling a home so the sale can close.
Lien Subordination
Subordination lets another creditor move ahead of the IRS. It is often used to make a refinance possible, especially when the new loan will help you pay the tax debt.
How a Lien Affects You
The three major credit bureaus stopped including tax liens on consumer credit reports in 2018. That does not make a lien harmless. A Notice of Federal Tax Lien is a public record, and lenders, title companies, and some employers search those records directly. A filed lien can block a home sale, stall a refinance, or make a business loan much harder to get.
Resolving the Debt Behind the Lien
Every lien solution comes back to the same root: the tax debt itself. We look at your full situation and pursue the resolution that fits, whether that means an
installment agreement that may qualify you for a withdrawal, an Offer in Compromise for those who meet certain financial guidelines, or penalty abatement to reduce the balance. Once the debt is handled, the lien can be cleared.
How We Help
We review your account, confirm where liens have been filed, and identify which lien option matches your goals. Then we prepare the request, gather supporting documents, and handle communication with the IRS for you. If you are trying to sell or refinance on a deadline, tell us up front so we can plan around it.
Serving Pasadena and Taxpayers Nationwide
We help clients in Pasadena, Sierra Madre, Alhambra, San Marino, and across Los Angeles County, and our work reaches much further: "Not only do we service every single county in California, but we service taxpayers nationwide." Learn more about the Tax Superwomen on the Fresh Start Tax Relief home page.
Frequently Asked Questions
Will a tax lien show up on my credit report?
The three major credit bureaus stopped including tax liens on consumer credit reports in 2018. However, a filed lien is still a public record that lenders and title companies can find.
When does the IRS file a Notice of Federal Tax Lien?
The IRS generally files a notice when a balance exceeds $10,000, although it can file at lower amounts depending on the case.
What is the difference between a lien release and a lien withdrawal?
A release ends the lien, generally within 30 days after the debt is paid. A withdrawal removes the public notice entirely, as if it had never been filed.
Can I get a lien withdrawn while I still owe taxes?
Possibly. One common route is a direct debit installment agreement on a balance of $25,000 or less, with a withdrawal request after three consecutive payments.
Can I sell or refinance my home with a tax lien?
Yes, in many cases. A lien discharge can release a specific property so a sale can close, and a lien subordination can allow a refinance to go forward.