Petaluma, CA asked in Tax Law for California

Q: Is a federal tax lien that is secured to a property dischargeable and if so can you remove the lien from the property?

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1 Lawyer Answer
Terrence Jay Moore
Terrence Jay Moore
Answered
  • Tax Law Lawyer
  • Santa Ana, CA
  • Licensed in California

A: No. It is not dischargable. But you can reduce it to a very small amount. If you file an Adversary Complaint and seek the value of the Lien determined. Then when that is determined you can pay that amount (usually determined by the amount of your Sch C on the Bankruptcy Petition) and the IRS will remove the lien. Usually for pennies on the dollar.

The above is not legal advice. It is an illustration of options that can be used in certain situations. I have not examined all of your facts, if I did I might provide a different response.

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