Media Tax Attorney Discusses Notice of Federal Tax Lien
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I received an unexpected notice of federal tax lien after I started a mortgage refinance process. Will this impact closing?
As an experienced Media Tax Attorney, I often handle these types of matters. The notice of federal tax lien may complicate the closing. Filing the notice establishes the right of the IRS to be paid first among your creditors. Lenders will likely not provide mortgage financing until all liens on the property are removed. The IRS may withdraw a public notice of tax lien before payment in full if you have entered into a direct debit installment agreement and you owe less than $25,000. The withdrawal of a notice of federal tax lien does not affect the underlying tax lien, but relinquishes any lien priority the IRS had obtained when the notice was filed. As a result, your mortgage lender would have priority in the event you defaulted.
Do you have questions about a notice of federal tax lien? If so contact the experienced Media Tax Attorney Stephen Loester.