What is an IRS Federal Tax Lien?

The IRS federal tax lien is a claim registered against property for the non-payment of back tax liabilities. Unlike a bank or wage levy, the tax lien does not deprive the taxpayer of the property or the right to transfer this property. If you owe back taxes then you may ultimately become the victim of one of the most powerful tools in their collection arsenal: IRS tax liens. And know that the larger your back tax debt liability, the sooner the IRS may issue this federal tax lien against your property. The formal notification is called a Notice of Federal Tax Lien and this is a ?public notice? that you owe the IRS money. Now your IRS tax problem will no longer be a ?private or confidential matter?. Anyone considering doing business with you like banks, various financial institutions, customers and vendors will know that you owe the IRS back taxes. That is the reason so many delinquent taxpayers hope to stop IRS tax liens before this matter goes on the public record at the County Clerk?s office in their particular county. Once the IRS federal tax lien is registered, then the IRS has now become a secured creditor right behind other prior secured creditors, but ahead of all your unsecured creditors. And to make matters even worse, this IRS tax lien will go on your credit report. It will negatively impact your credit score, obviously making future financing for home, vehicle or other types of loans very difficult. Very often, this federal tax lien can make you completely ineligible to borrow, even at ridiculously high rates of interest, depending upon the guidelines imposed by the lender.

What are your options to secure an IRS lien release?

The Internal Revenue Service will release a Notice of Federal Tax Lien within 30 days after you satisfy the tax due (including any interest charges or other additions) by paying the tax debt or by having it adjusted, or within 30 days after the IRS accepts a bond that you submit, guaranteeing payment of the debt. It is prudent to seek out the advice of IRS tax specialists for IRS tax liens. The negative impact can be far reaching, as noted above in the first section. Keep in mind that an IRS lien release will typically occur ten years after the tax is assessed, provided the IRS does not file it again. However, contacting IRS tax specialists to review your tax lien problem is certainly advisable over ?waiting out the 10 year period? for the IRS federal tax lien to automatically or self-release. There are standardized procedures in place for IRS lien releases, discharges and subordination. In qualifying situations, the IRS will normally remove the tax lien within 30 days and the taxpayer may receive a copy of the Certificate of Release of Federal Tax Lien.

What can be done if you cannot afford to pay the tax debt in full?

Obviously, if you had the funds to remit on your back tax liability, you would not find yourself in this predicament where you are staring in the face of an IRS federal tax lien. As discussed above, the IRS will issue an IRS lien release if you satisfy the tax debt due by paying it or having it ?adjusted?. This essentially means that the IRS is open to a tax settlement, also called a ?compromise offer?, for an amount less than your full back tax liability. While this may sound quite easy, do not plan on this being a simple situation. If you are hoping to reduce your delinquent tax debt, there are several programs you may qualify for. IRS tax specialists have the in depth knowledge and experience to review your financial situation as it pertains to the Offer in Compromise program (both personal and business) as well as IRS Penalty and Interest Abatement. Both these programs offering IRS tax debt relief do reduce the overall tax liability. However, making or submitting an ?offer? to the IRS will not affect the IRS tax lien which remains effective until your offer is formally accepted and the amount is full paid to the IRS. At that point, a taxpayer may request the IRS lien release. Again, IRS tax specialists handle IRS tax liens a daily basis. They are abreast of all the complexities to insure your best chance at success for an accepted reduced offer and the ultimate release of your IRS federal tax lien.

Have you not filed your income tax returns for several years? Do you have an IRS Tax lien and a State Tax lien filed against your credit report? Are you in the critical situation that IRS Wage Garnishment along with the State Wage Garnishment has left you with a very small paycheck? If any or all your answers are positive or yes, then the best advice for you is to get your returns prepared from experts of Tax Solutions Group.

It is a fact that there are many people available who are victim of IRS tax lien and what to know about a remedial measure to get out of all these things. Because of increased tax liability they get into the situation which is nearly similar to panic. In addition there are good number of people who are interested in buying the tax lean property but don?t know how to get the best deal. If you are also in the group of either the IRS tax lien victims or those looking for tax lean investment, it is must for you to take the services of Tax Solutions Group.

Why Tax Solutions Group (TSG) only?

There are many companies available in the market that can offer relief from IRS tax lien or that can resolve the government tax liabilities but the question that emerges is why Tax Solutions Group is considered as an inevitable choice?

The answer to this question can be easily obtained after visiting the testimonial page of Tax Solutions Group that clearly depicts how it has helped large number of people suffering from the troubles as stated above. ?

Tax Solutions Group is a company located in Santa Ana, California which is known to offer the best tax debt solution. It is a company that is dedicated to find a permanent solution for the back tax burden of its clients. It has solution for individual tax payers as well as businesses and has 15 years experience and expertise to solve the IRS and State tax problems.

What are the services offered by Tax solutions Group?

There are several services offered by Tax Solutions Group, some of them are listed as under:

1.????? Helps in negotiating the tax debt down by an unbelievable average of 94% less

2.????? Offers best advice on purchasing tax lean property for secured future

3.????? ?Files past tax forms

4.????? Helps in reducing or even eliminating penalties and interest owed

5.????? Helps in negotiating an affordable and reasonable payment plan etc.

IRS has end number of powerful tools for collecting tax that are enough to destroy anyone?s finances. Some of the most common tools are IRS tax lien, imposition of wage garnishments by banks to outright closure of business etc. ?The best way to secure your money is by utilizing it in the better investment and by finding out better options that can be made available by tax attorneys. However it is important that the attorneys to be chosen must have complete knowledge and experience as then only it is fruitful. For this reason also Tax Solutions Group is considered as the best choice.

So get rid of all your worries and act prudently by taking assistance from experienced staff of Tax Solutions group. After all you deserve the best!

Tax lien investing has been a tool used by the savvy investor and corporations for over 100 years to accumulate large profits.? This strategy is so easy that it is overlooked by many as not profitable.? Most of the Real Estate educators have limited knowledge of this as they have determined this to be an advanced strategy.? Most of the large companies that spend BILLIONS of dollars per year are happy to see this.

So why spill the beans now?

I have been promoting this strategy since I learned about it in 1998 while working as a paralegal in a law firm located in Parsippany, NJ under the guidance of the partners Mike P. and Ralph A.? I was just one of several paralegals preparing the foreclosures of tax liens held by our clients.? During my time there I began to see a pattern among our clients in that they were making large sums of profits in this area.? I began to look for books on the subject and found only one which did not provide much more than a few paragraphs on the subject.? Thus began the quest to learn more the old fashion way, doing it.

Tax Liens and Tax Deeds are a way to get property for just pennies on the dollar where you can own a property free and clear of all liens and encumbrances.? Just think of going out and purchasing a home valued at say $80,000.00 for only $3,000.00. You could keep the property, fix it up and rent it out and make a great ROI over time. You may want to clean it up and sell to a homeowner for $50,000.00 to $60,000.00 and receive a huge profit. Some may just want to sell it immediately (aka flipping) to another investor for $20,000.00 and pocket a good profit without ever getting your hands dirty.

You may have seen the late night ads on TV and wonder if they are true.? cannot speak for TV, but I am here to tell you it does works and I have been making money at this since 1999, just one year after learning about it from the law firm I was employed at. Oh. One more thing. I was doing so well at this that I stopped working as a paralegal and became a full time investor after only 2 years. Over the years I have purchased thousands of tax liens with property values in the millions of dollars.? I have taught thousands of students to invest in tax liens and tax deeds in the US and overseas.

So how can the average person get started now?? This is the best time to start in over 10 years as the market is perfect for getting very high interest returns.? So let?s see what you can do. First you need to find out where the next tax lien auction will be held. If one is online then that will be great as you can do it right from your computer. In the first week of May thru the first week of June there are tax lien auctions in the state of Florida. Of the 67 counties, more than 23 of them had internet auctions to sell off their delinquent tax liens. I had registered for 19 internet auctions and 1 live auction.? I had set limits to how much I would spend and how low I would bid the interest rates down.? While many investors had bid the interest rates down below 5%, I stood fast at 18% and never allowed my position to be compromised.? When all was said and done, I walked away with several hundred tax liens with ALL at 18% interest earned.? The method I used was no different than the system I used when I bid for ATF in the early stages of my investing career where I was known as one of the most aggressive bidders in the circuit.? It is the same system I used to get the advantage over the large corporations and is what I teach students all over the world.

So what is the secret and how can you do the same thing.? First you will need to establish your budget and have the funds available before you make your first bid.? If you do not do this and get in the bidding and do not pay for your winning bids the county will not be happy with you at all.? They will first not permit you to ever return to the auction and they may even go after you in court for breach of a purchase agreement.? So now that I have scared some of you away, let?s look at the good side.? I like to review the list of properties that have the tax liens on and group them.? Separate the land, homes, commercial buildings and agricultural properties.? With homes you may have to separate structures from mobile homes.? While I was bidding in Collier County Florida at the end of May 2009, I used a different strategy then for other counties.? Typically I stay away from the mobile homes and pass, but this time I bid.? The value of the mobile was around $3,000.00 but the land had values over $200,000.00 which had me interested. I decided to bid on these as well as single family homes with values of $250,000.00 and higher.? At the auction I anticipated a room full of bidders and yet found the room to be only 1/3 attended and many of the liens went for 18% while the players still fought over a few and bid them down to 1% or less in some instances.? I probably spent over $60,000.00 in two hours and by lunch time and exhausted my budget I had to set before the auction and once placed could not be changed.? I found the results here were typical of all the counties around Florida.? Everywhere I bid I saw the results the same, I was getting more than 30% of all my bids of 18% accepted.? All I had to do was a little research and place the bids to make money.

So, you missed out on the greatest auction results I have seen in over 10 years and now what can you do. The answer is simple; many of the liens were not sold because the funds ran out.? Typically they are left over because they are junk and no one wanted to bid on them.? Now all you have to do is contact the tax collectors office and ask for the over the counter liens list and pick the ones you want. In Florida all you have to do is hold the tax lien for 2 years and then request the tax deed sale and one of two things will happen.? One is that it will be paid off (redeemed) by the property owner or it goes to sale.? If it goes to sale and its bid on you will get your money plus interest at 18% per year pro rated till it?s sold.? If no one bids on the property then it will be deeded over to you the tax lien holder. Out of the 67 counties I am sure most of them have tax liens that were not sold and you can just buy them and wait for the checks to roll in.? I get checks often as I have been buying for a long time. When you first start out it may be a few months before the first check arrives and may be a few years before you can invest enough to make a living off of.? You just need to get out there and buy your first lien.? It may not be your best deal ever, but it will be your first of many that will ultimately help change your life.

Tax deed sales are also an area not to be overlooked.? Just like the tax liens have had low attendance, so has the tax deed sales. Tax deed sales work almost the same way the tax lien sales work in that you have to bid for the property against other bidders. Instead of bidding on the interest rate you would like to receive, you are bidding on how much you want to pay for the property.? If you do your homework and have a network in place to help you move the properties, you can make several thousand dollars per property if you want. I show investors how they can make back part of the losses from the major hit we had with real estate values with tax deeds. If they just forget about the negative and work on the positive, they can recoup the losses and make a profit.? Here is an example, let?s suppose that you have a loss from a deal of $40,000.00 and you want to make that back.? Even though you have not sold the property, it is a loss in your mind and we can work with that.? If I were to buy a property at a tax deed sale for say $4,000.00 that has a market value of $8,000.00 and then sell it for $6,000.00 I would see a profit of $2,000.00.? What if I were to do 2 of these deals per week and profit $4,000.00 total each week.? By doing this for 10 weeks I would have accumulated $40,000.00 in profits and thus would have offset the loss from the other deal.? I have taught this simple yet effective strategy to many investors that see the benefit to small profits that take only weeks to complete instead of months to be completed.

If you had a small amount to invest, then get into the tax deeds. Take part of the profits and buy tax liens from the county till the next tax deed sale.? After you have purchased 5 tax deeds, keep one in your portfolio.? I like to use the method of buy 5, sell 4 and keep 1.? If you can do this every week for one year you will have about 50 properties that were paid for from the profits.? If the properties increase minimally to just $10,000.00 each you will have a half million dollars in your portfolio.? If you did this for 4 years you would have two million dollars ($2,000,000.00).? At this point you could do many things. Invest only in tax liens at 18% and make $360,000.00 a year in interest, or ?. Loan the money out as a hard money lender at 25% and make $500,000.00 per year, or ?. Be safe and invest in bonds or other secure vehicles at 8% and make $160,000.00 per year.? But either way that should be enough for one to retire and maintain a very good quality of life.

Recently someone contacted me with a very “valuable” lien that they had for sale. They didn?t have the money to foreclose on the lien and wanted either to sell it or partner with someone on foreclosing it. (Have someone else hire a lawyer to foreclose on the lien and share in the profits). When I checked into the property, I found out that it was a vacant piece of land with little value, and the lien holder had already invested more than $16,000.00 into this lien. They had paid subsequent taxes over a few years and when they stopped paying the taxes the lien was struck off to the municipality.

Because this was not a good property the municipality never foreclosed the lien as well. The original lien was purchased back in 1993. The municipality picked up the lien in 1997 and the back taxes owed on this property now are probably more than the property is worth. I had to give her the bad news that her lien is not worth foreclosing on and she won?t be able to sell it. If she only knew when NOT to buy a tax lien, this bad investment would have been avoided.

So here is a list for you of a few reasons not to buy a tax lien. Be sure check the items on this list for tax sale properties before you purchase a tax lien certificate on the property and you?ll avoid taking an un-necessary risk with your money.

? There are very low annual taxes for the property (lower than usual for the area)
? You can?t find the property on the tax map
? You can?t locate the property to look at it
? The property has an unknown owner
? The property is land locked with no right of way
? The property is not large enough or not the right shape to build on (check zoning)
? There are prior tax liens on the property and the prior lien holder is at the tax sale
? The property is or has been contaminated (check the state environmental web site)
? The property is condemned or about to be condemned (eye-ball the property or check with the municipality)
? The grade of the property is too steep to build on
? The property is in a flood zone

These are just some reasons not to buy a tax lien certificate. I don?t want to give you the wrong idea. Investing in tax liens can be very profitable. I believe that it?s an excellent way to invest your money safely if it?s done properly. You can find out all the reasons why I like in tax lien investing in my article Why Do I Invest In Tax Lien Certificates.