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Tax Help - Lien Subordination

A lien is a piece of paper that is filed in the county in which you and/or your business reside in. Unlike a levy, it does very little with respect to your everyday life. However, a lien has an extremely detrimental effect on your credit. It can make buying, selling or refinancing accounts receivables nearly impossible. Most lenders will not lend to you because a tax lien is considered a huge credit risk. There are solutions though, and Vast Funding can help.

If you have a tax lien, it is possible through lien subordination to lift that lien with the purpose of making a payment toward your tax liability. For example, the IRS will permit lien subordination in the sale or refinance of accounts receivables with the requirement that a portion of all proceeds be applied to your tax debt. This can be advantageous to both the IRS and the tax payer, since the taxpayer can sell or refinance their receivables and the IRS received payment on the taxes owed to them.

Lien subordination will allow a taxpayer to sell their receivables by providing them a means to secure funding from a lender. The IRS will give the lender a superior interest in the accounts receivables, so that they are willing to lend the money. It can work to the IRS's advantage because any appreciation in the real estate will go to them to settle your debt. Lien subordination is common, but can be difficult to achieve without the help of a tax professional, like those at Vast Funding. Contact us now and we can work with you to secure funding, and negotiate with the IRS to subordinate the lien-many times we can even expedite the process to prevent you from losing your funding..