Business Tax Liens

Business Tax Liens in Utah

When a business owes taxes, the IRS may file a federal tax lien to protect its claim against the business.  The IRS lien is a public document that is filed with the county recorder’s office to put other creditors on notice that the IRS has a lien on the business’s property.  If the IRS files a federal tax lien against your business, it may affect your company’s ability to obtain credit or retain the credit accounts that the business has such as flooring credit lines or operating lines of credit.

Resolving an IRS Tax Lien

1. If a current lender is threatening to cut off a line of credit due to the IRS tax lien, we can help you file a lien subordination request.  A subordination request is where we ask the IRS to take a lien position behind the creditor that is supplying the necessary credit.
2. Withdrawal.  If the existence of the IRS tax lien is going to cause your business to shut down or significantly reduce your business income, we can help you file a lien withdrawal request with the IRS.  A withdrawal of an IRS lien means that the lien is released in full and is removed from your credit.  If you have paid your taxes in full and your credit is still showing an IRS tax lien, we can help you apply to have that lien withdrawn under the IRS’s Fresh Start Program.
3. Discharge.  If the lien is preventing the transfer or sale of your business property, we can help you file a lien discharge request.  A lien discharge is where the IRS agrees to release its lien on a specific piece of property.  An IRS lien discharge requires that the IRS either receive the equity that the IRS has in that piece of property or that the IRS has no equity in that piece of property.

We can help you determine which process is best for your business in dealing with a federal tax lien and work with the IRS to resolve your tax lien. Contact our attorneys for a consultation today.