When an NFTL is issued, the taxpayer is provided an opportunity to dispute the IRS lien by requesting a Collection Due Process (CDP) hearing within a specified timeframe. Possible remedies to a federal tax lien filing include the lien being Withdrawn, Satisfied, Discharged, or Subordinated. The applicability of these remedies is dependent upon the facts and circumstances of the taxpayer(s) involved. While all of this might seem straightforward, it is not. Federal lien law is complex and riddled with nuances and possible pitfalls. For those who have been issued an NFTL, it is wise to consult with a competent tax resolution law firm to determine the best course of action to be taken with respect to the federal tax lien.
Like the federal tax lien, the New York State Department of Taxation and Finance (DTF) files NYS Tax Warrants against taxpayers who are delinquent with their payment of NYS tax obligations. Unlike the federal tax lien, however, there is no “silent” or “secret” lien that exists when a NYS tax liability is assessed. The NYS DTF must perfect its security interest in the property owned by a taxpayer by filing a NYS Tax Warrant as a public record in the County Clerk’s Office where the taxpayer resides. The NYS Tax Warrant is essentially a judgment filed against the taxpayer and encumbers property owned by the taxpayer including but not limited to Real Estate.
Since both NFTLs and NYS Tax Warrants are public records, soon after they are filed, delinquent taxpayers are often bombarded with solicitations via mail, email, and telephone, for tax resolution services. Many of these solicitors are not locally established or licensed law firms and tend to make lofty promises to vulnerable taxpayers without first considering their particular facts and circumstances. Qualifying for any resolution to a tax problem requires financial analysis, so be wary of any solicitor that promises results without first understanding your set of facts and circumstances. If you find yourself searching for professional help with delinquent tax debt, it is a wise decision, but it is important to thoroughly research the company before hiring them and to keep in mind that if it sounds too good to be true, it probably is.
