IRS Tax Lien on Real Estate Not In Your Name

In S. v. Rominski, et al a District Court in Illinois has held that the IRS may file a tax lien against an individual’s real estate even if the property’s legal title holder is another individual. A couple lived in a property which was titled in the husband’s name only. In order to protect his property from potential malpractice claims, the husband who was a practicing attorney transferred the property to his wife for no consideration. Later on, the couple divorced but agreed that the property belonged to the husband who continued living in the house. When his federal income taxes went unpaid, the IRS filed a lien against the property. The husband argued that since the property was titled in his wife’s name the lien was invalid. The court held that the husband was the true owner of the property and his ex-wife was only holding the property as his nominee. Therefore, the IRS’s federal tax lien was held to be...

IRS Tax Liens

State & IRS liens, levies and seizures are some of the strongest collection tools at the disposal of the government. For example, if you owe back taxes to the IRS, a tax lien automatically attaches to your personal property. This statutory tax lien is also called a “secret lien” since only the taxpayer and the IRS are aware of its existence. The IRS then sends you a tax bill, which if not paid within 30 days allows the IRS to make the lien public by filing a notice in the public records. The filing of the Notice of Federal Tax Lien would severely damage your credit record which in turn would result in further financial hardship.       If after filing the Notice of Federal Tax Lien you still don’t pay the tax bill, the IRS would remind you again of your tax debt and then will proceed to seize your property by initiating the tax levy process. By law, the IRS has the power to take your personal and real property. Your bank accounts may be seized (also known as bank levy) and your wages may be garnished.       If you have recently received a tax notice or tax bills from the IRS or from your state taxing agency, do not ignore them. These letters are only the first steps in the tax collection process, which may result in tax liens, tax levies (including a bank levy) and wage garnishments. We can assist you in responding to the IRS and state taxing authorities and preventing them from pursuing aggressive collection actions. If a lien has already been filed or the IRS...