Everyone Who Can’t Pay Back Taxes Wants a Release Tax Lien Certificate

Author: taxhelpers | Posted: 25.12.2011

If you can’t pay back taxes within 10 days of receiving notice by the IRS a lien may be put on property and assets. Until you get a release tax lien certificate from the IRS they technically own all assets and property up to the amount of the back taxes owed. It doesn’t matter who you are if you can’t pay back taxes the IRS wants the money and will use any means at their disposal to get it. One of their favorites is a lien against personal property. Many celebrities have had, or currently have, liens against their property lawyer up in an effort to obtain a release tax lien certificate. Whether they were to busy, got bad advice, or simply can’t pay back taxes they will have to achieve a tax settlement to obtain a release tax lien certificate from the IRS or state tax authorities.

Tax troubles are nothing new to Val Kilmer, no different from anyone who can’t pay back taxes. When he didn’t pay back taxes from 2008 he got notice of a $498,165 IRS lien last November. The IRS previously presented Kilmer with a tax lien of $538,858. Sometimes if you can’t pay back taxes just seeking a release tax lien certificate may change the amount of tax owed. Kilmer's tax problems actually date back to 2004 when a New Mexico Court of Appeals ruled against the actor who said he was really owed a tax refund of more than $300,000. He recently got his release tax lien certificate by paying the full amount even though he still trying to sell his ranch near Santa Fe, for about half the original asking price. At least there’s no lien on it anymore.

Pamela Anderson apparently has been to busy with her taxes in California. Sometimes people can’t pay back taxes because they can’t figure out how much they owe. The state rewarded her negligence with a tax lien for $493,144 in unpaid personal income tax in April 2009, then followed with a second lien for $180,000 last November. Anderson apparently filed annual taxes but not for the correct amount, and her plans to build a $50 million waterfront condo development went south in the real estate crash. Anderson claimed she wasn’t broke, just disorganized. She said, “mistakes have been made in calculating taxes owed and we are now in the process of ensuring that any taxes owed are paid.” That may be true but reports that she was seeking to lease her Malibu home as a vacation rental tells a different story. Maybe the proceeds will get her that release tax lien certificate every celebrity with a lien against their property is seeking. Below are the instructions contained in the tax code for obtaining a release tax lien certificate:

Section 6325(a) of the Internal Revenue Code directs us to release a Federal Tax Lien after a tax liability becomes fully paid or legally unenforceable. We also must release a lien when we accept a bond for payment of the tax. If we haven’t released the lien within thirty days, you can ask for a Certificate of Release of Federal Tax Lien.

If you have paid the tax you owed in full and have not received a copy of the Certificate of Release of Federal Tax Lien, you may write or call your local Lien Processing Unit.. Locate the state where you live to obtain the phone number or the appropriate address.

The certificate you receive will not show the official recording information. For a copy of the recorded certificate, you must contact the recording office where the Certificate of Release of Federal Tax Lien was filed. Requests for certificates of release for any other reason should be mailed to IRS, Attn: Technical Services Group Manager. Use Publication 4235, Technical Services Group Addresses, to determine where to mail your request. Send your written request with any required docu¬ments to the appropriate address.

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