2006-11-20 11:52:23 · 4 answers · asked by Patrick G 1 in Business & Finance ➔ Taxes ➔ United States
No. This is a complicated area, and anyone in this situation should seek the counsel of a competent tax professional.
While the IRS collection department may write off a tax liability as “uncollectible”, IRS tax liens are generally good for the sooner of:
a) 10 years after the date the lien is filed, or
b) the date the underlying liability is paid in full.
There is a difference between an IRS tax debt, which normally runs for 10 years after the “date of assessment” (usually within a few weeks of the date a tax return is processed), and an IRS lien. A lien is a public notice that the taxpayer owes a debt. It is usually filed in the County of residence of the taxpayer, or in the County where he or she owns property. A lien normally has a 10-year life from the date that it is filed (usually 1-2 years after the original tax debt is assessed). However, the IRS may in certain circumstances reduce the lien to a judgment, and re-file the lien for a maximum of three renewals. Therefore, in the worst-case scenario, and lien may exist for up to 40 years, and that lifetime of the lien may be as much as 45 years after the original tax return filing date.
Special note: in the case of a bankruptcy, an old income tax liability may be discharged by the Bankruptcy Court. However, any lien filed before the bankruptcy is filed will remain on the books. Thus, a taxpayer who discharges their old tax debt in a Chapter 7 filing, and then sells their home or other real property soon after the court has discharged their debt, will find that the tax lien still attaches, and the IRS will collect the tax debt on the sale of the home.
2006-11-21 05:49:42 · answer #1 · answered by Tobin P 2 · 0⤊ 0⤋
An IRS lien will expire after 10 years unless the service has moved to reaffirm the lien. You will likely have to demand the release of the lien. Seek the help of a EA or CPA if you need help.
2006-11-21 03:31:54 · answer #2 · answered by daoco 4 · 0⤊ 0⤋
A lien is attached to something, like a house. it is only potentially uncollectible if the house is sold and there isn't enough money to satisfy the lien. Don't bank on getting off for the rest.
2006-11-20 23:48:12 · answer #3 · answered by skip 6 · 0⤊ 0⤋
No. Liens, like taxes are always with you.
2006-11-20 11:57:29 · answer #4 · answered by PALADIN 4 · 1⤊ 0⤋