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How Do You Remove a Tax Lien on Your New York Property?

lien new york property

It is not that easy to get a New York State tax lien removed from your property. Satisfying the debt by paying it off or getting a tax settlement accepted are usually the best ways to accomplish this task. Depending on your circumstances, you may be able to resolve this issue for a smaller sum of money. However, the Empire State will not make it simple or easy. If you would like more information on how you can remove a tax lien on your New York property, please read on, then contact an experienced Rockland County real estate litigation attorney today.

How do you resolve a New York State tax lien?

In order to get it off, you need to completely pay the tax once the state has issued a tax warrant or placed a lien on the property. You have a wide array of options that you may employ in order to pay less than the actual debt, but the most common include:

  • Pay in full: Pay off the debt and the liens will come off.
  • Arrange a payment plan: Once paid in full, the state will release the liens.
  • Offer in Compromise: Negotiate a settlement wherein you pay less than you owe, which may be more difficult if you have valuable property.
  • The tax debt expires: Generally, New York State has twenty years to collect on a tax debt, and the IRS has ten years.

Will the state penalize you for a tax lien?

If you pay the lien in full or are in a payment plan, you might qualify for a penalty abatement. Before you attempt this, it is best to speak with a skilled Rockland County real estate attorney to discuss your eligibility.

Can you sell a property with a New York State tax lien on it?

You must pay the debt in full with guaranteed funds in order to release the lien. The state will then issue a Notice of Pending Warrant Satisfaction. Most title companies will accept this as proof that the state will release the lien.

How does the Offer in Compromise work?

The Offer in Compromise program allows qualifying, financially distressed taxpayers the opportunity to put overwhelming tax liabilities behind them by paying a reasonable portion of their tax debt. New York State can consider offers in compromise from:

  • Individuals and businesses that are insolvent or discharged in bankruptcy, and
  • Individuals who are not insolvent or bankrupt, if payment in full would create undue economic hardship

If paying the tax lien in full would leave you unable to pay reasonable basic living expenses, you may qualify for undue economic hardship. Basic living expenses include those that provide for the health, welfare and production of income for you or your family.

Reach out to our firm to discuss your case and determine if you qualify.

Contact our Firm

If you require an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.

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