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Tax Lein Question

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    Tax Lein Question

    The IRS filed a tax Lien against my unpaid taxes on 12/25/951995. It expires on 1/24/06.
    It was for the years 1990, 1991 and 1992. Since I have been on an installment agreement since 1995, I have paid off 1990 and 1991.
    I also have federal taxes owed individually by me for years 1996 and 1997 and joint taxes with my wife for 1999 and 2001. These are not listed on any lien.
    I owe $4700 for 1992 and about $17,000 in total.
    Will this tax lien keep those taxes from being discharged under a Chapter 7?
    Would they be included in a chapteer 13?
    Is the IRS going to seize all of my personal preperty to pay that portion under a lien? We rent and the vehicles are in a negative equity situation under KBB trade-in value, but have positive if retail value is used.
    Please help. This is not something I had though I would encounter. AAArt

    #2
    The tax lien cannot be discharged, so any taxes included in the lien, cannot be discharged. (technically, a tax lien is a secured debt). So, if you have $4700 subject to a tax lien, that cannot be discharged.

    The other taxes, expecially 1996 and 1997, 1999 may be discharged if you filed the tax return and the tax was not assesssed in the last 240 days. The 2001 tax liability probably can be discharged if you filed the tax return and again, if the tax was not assessed in the last 240 days.

    If you're on a payment plan right now, the IRS is not going to take any property, and they usually don't anyway.

    Also, if the lien is going to expire, you may want to sit tight and do nothing, although the IRS can renew the lien, I think its hit or miss whether they will.

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