Tax Lien Subordination

Having an IRS tax lien makes it difficult to sell or refinance your assets. Typically, liens are paid to the creditors in the order they have been filed. Therefore, creditors prefer to be first in line. However, the law allows the IRS to be in front of the line to claim your property. A tax lien subordination will allow a specific creditor to move their position ahead of the IRS's claim on a taxpayers' property. Generally, the IRS will allow a lien subordination if it will allow the taxpayer to sell or refinance their assets to pay their overdue taxes.