Tax Resolution Services
Whether you’re looking to refinance or sell a home, but have a federal tax lien, the tax professionals at Direct Tax Relief will pursue all avenues for a lien subordination.
If a tax lien has been filed against you AND you owe back taxes, you may find you are unable to refinance or sell property. To resolve this issue, you can file a Lien Subordination with the Internal Revenue Service. While this does not remove the lien, it does make it secondary to any other loans, allowing you to refinance or restructure your loans. But with complex rules and qualifying factors, the tax experts at Direct Tax Relief can navigate the steps and find success for you through lien subordination.
With DTR’s Help
Good for those looking to refinance or sell property
An alternative to other resolution programs
If you owe tax debt, an Offer In Compromise can help you settle it for less. DTR has the expert negotiation skills needed to get your tax debt reduced as much as legally allowed.
If you’re a business owner who fails to file or pay payroll taxes, Direct Tax Relief will negotiate with the IRS to reach a resolution and protect your business from shutting down.
Direct Tax Relief negotiates with the IRS to have these difficult penalties removed from your account, getting you out of debt and back to freedom, based on reasonable cause.
Working with you from the first step of tax debt resolution, Direct Tax Relief has tax accountants to prepare your unfiled tax returns, whether it's an individual return or complex corporation returns.
At Direct Tax Relief, we'll negotiate with the IRS to create an easy, affordable payment plan that gets you in compliance, and works with what you can afford, preventing future IRS wage and bank garnishments.
If your individual or business tax returns are being audited, Direct Tax Relief’s tax experts can take over your audit proceedings to ensure you get the resolution you deserve.
When your taxes remain unpaid and a bank levy is issued, Direct Tax Relief can help you find a resolution so you can avoid frozen bank accounts and money seizure and, in some cases, have current bank levies released.
When your wages, commissions, and Social Security income are being garnished because of unpaid taxes, DTR will negotiate with the IRS to put a stop to it.
If you’re a retail store, contractor, or provide in-home services, you could face state tax issues. But the experts at Direct Tax Relief have expert guidance and solutions to get you on the road to tax debt freedom. We can also help with state income, payroll and sales tax issues.
In certain situations, Direct Tax Relief may be able to have your federal tax lien released, once we complete resolution of your case.
For married couples, filing your taxes jointly can provide many benefits–but it can create problems. If you have tax liabilities, interest, and penalties as a result of filing jointly, DTR professionals can get you on the road to being tax debt free.
If you are looking to refinance your house but have a federal tax lien, the tax professionals at Direct Tax Relief will pursue all avenues to find a solution through a lien subordination.
IRS lien subordination allows another creditor to move ahead of the IRS tax lien for a specific financial transaction. This does not remove the tax lien, but it changes the priority so another lender can take precedence. Subordination is often used when a taxpayer needs to refinance a loan or obtain financing. In many cases, this arrangement can help facilitate a transaction that ultimately benefits both the taxpayer and the IRS.
A lien release removes the IRS’s legal claim against your property once the tax debt is resolved. Lien subordination, on the other hand, keeps the tax lien in place but allows another creditor to move ahead of it for a particular loan or transaction. This means the IRS still maintains its claim to the tax debt. The difference is mainly about priority rather than removal.
Taxpayers often request lien subordination to refinance a mortgage, obtain a home equity loan, or secure other financing. Allowing another lender to move ahead of the IRS lien can make it easier for the loan to be approved. In some situations, the refinancing may lower monthly payments or free up funds to help resolve the tax debt. Subordination can therefore be a strategic step in managing both tax and financial obligations.
Refinancing a home can be difficult when a federal tax lien is in place because the IRS has a legal claim on the property. However, lien subordination may allow the refinancing to proceed by giving the new lender priority. Each request is reviewed individually to determine whether the arrangement supports tax collection. If approved, the refinancing can move forward under the new priority structure.
No, lien subordination does not eliminate the tax debt. The tax lien remains in place and the balance owed to the IRS still exists. The purpose of subordination is simply to adjust the priority of claims for a specific financial transaction. Resolving the underlying tax liability still requires addressing the tax debt directly.
Lien subordination most commonly involves real estate such as a primary residence or investment property. However, other property tied to financing arrangements may also be considered depending on the situation. The IRS reviews the property, loan terms, and financial details before approving a request. The goal is to ensure the arrangement does not reduce the IRS’s ability to collect the tax debt.
The timeline can vary depending on the complexity of the request and the documentation provided. The IRS typically reviews financial information, loan details, and the impact of the proposed transaction. Providing complete and organized documentation can help move the process forward more efficiently. Approval times may differ based on the circumstances of the case.
Yes, lien subordination is often used to help taxpayers obtain financing that might otherwise be denied. By allowing the lender to take priority over the IRS lien, the lender may feel more comfortable approving the loan. This can make refinancing or borrowing possible when it would otherwise be blocked by the lien. In some cases, the loan proceeds may also help address the tax liability.
Not necessarily. Lien subordination can sometimes be requested even when the tax debt has not been fully paid. The IRS reviews whether the proposed transaction improves the taxpayer’s ability to pay or helps protect the government’s interest. Each case is evaluated individually based on the financial details involved.
Requesting lien subordination typically involves submitting detailed financial information and documentation about the property and loan. This may include loan agreements, appraisals, financial statements, and supporting records. The IRS reviews these materials to determine whether the request meets its requirements. Providing clear and complete documentation is an important part of the process.
