The Federal lien tax is the most important of all the collection action that’s taken by the IRS collection division. The representing clients here need a clear understanding of the manner the lien arises and the different kinds of property to which this lien is attached to. The results of these attachment, the time period of the lien and the importance of the tax lien as compared to the interests of different claimants to the property of the tax payer in conjunction with the circumstances that revolves around the IRS and its removal or sub ordinance of the lien should also be taken into consideration.

Notice of Federal tax lien:

Lien provides you a legal claim to your property as a kind of security or payment for the tax debt. The notice of federal tax lien may be filed only after the liability is analyzed, a notice and demand for payment is sent or you neglect or refuse to pay the debt in full with in the period of ten days after you get the notification.

As soon as the above mentioned requirements are met, a lien is created. This lien is for the specific amount of your tax debt. The filing notice of this lien will notify your creditors publicly that a claim is produced against all the property you possess including the property you have obtained after the filing process of the lien. This notification s utilized by courts to provide priority in many situations including bankruptcy proceedings or the sale of real estate.

The lien is attached to all the property you possess including house and car. This lien is also attached to all the rights you have to your property including the accounts receivable in case, you are into a business.

You should be aware of the fact that once a lien is filed your credit rating may be tarnished. You may not be able to receive a loan in order to purchase a house, a car or credit card. You may also not be able to sign a lease.

Releasing a lien:

The issuance of a release of the notice of federal tax lien is made within thirty days after the tax due is satisfied via paying the debt or getting it adjusted. It can also be released within thirty days after the acceptance of a bond submitted by you that guarantees the payment of the debt.

You should also pay the entire fees that a particular state or any other jurisdiction charges in order to file and release the lien. The fees mentioned above will be added to the actual amount that you owe.

Once a tax is assessed, a lien is usually released after ten years automatically.

Withdrawal of liens:

A filed notice of tax lien can be easily with-drawn in case, the notice was filed before the specific date or you happened do enter into an installment agreement to pay the debt on the notice of lien. It can also be withdrawn if it can speed up the process of the tax collection.