Tax Liens

Tax Liens

Any person or business that owes taxes and does not pay those taxes, the law creates a lien against the property of the person or business. We refer to this lien as a Statutory Lien since it comes directly from the statute, IRC §6321. The Statutory Lien continues until the liability for the amount assessed is paid or becomes unenforceable due to a lapse in time, known as the Statute of Limitations.

Notice of Federal Tax Lien

Many times, the IRS Lien must compete with other liens against your property. In order to protect the Government’s priority against certain other competing lien interests, the IRS must file a Notice of Federal Tax Lien. The IRS files the Notice of Federal Tax Lien with the County Recorder where you live. The Lien generally remains on your property until it expires, is released, or is discharged. In some instances, we can get the Liens removed in certain Installment Agreements or Offers in Compromise.

Statutes of Limitations

The law limits the amount of time for the IRS to take various actions against you, known as the Statutes of Limitations. For example, the Statute of Limitations for Collections is ten years from the date the tax is assessed. For adjustments to your account, as in an audit, is three years from the date the return was filed. And the Statute of Limitations for making an assessment in the first place is six years. There is no Statute of Limitations for fraud. Contact D’Arco Tax Resolution to determine which Statute of Limitations may apply to you.