Silent Automatic Lien - Explained
What is a Silent Automatic Lien?
Written by J. Mance Gordon
Updated at April 19th, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is a Silent Automatic Lien?
A silent automatic lien refers to a type of lien employed by the Internal Revenue Service (IRS). Often, it arises automatically upon the occurrence of a delinquent or unpaid tax obligation. It is not filed in public records the way that federal tax liens are. Rather, these liens are used to secure the IRS's claim against property for unpaid taxes.
How to Remove a Silent Automatic Lien?
Taxpayers who have silent automatic liens can have the liens removed through the following ways;
- Declaring Bankruptcy: When a taxpayer declares bankruptcy, it means that such a taxpayer if financially incapable to pay the taxes owed.
- Payment of unpaid taxes or taxes owed: This is by paying all the taxes owed to the IRS.
- Negotiating with the IRS: This is also called an offer in compromise, it allows delinquent taxpayers to pay lower than the amount of taxes they owe. This will allow taxpayers settle their owed taxes for little amount.
- Waiting for time limit for collections to pass.