A federally authorized lien against any and all assets of a taxpayer who has unpaid back taxes. The lien allows the Internal Revenue Service (IRS) to secure or otherwise requisition the taxpayer's property in order to secure payment. Federal tax liens can be assessed for unpaid taxes of any kind, including income, self-employment, gift or estate taxes.
Investopedia Says: Federal tax liens differ from tax levies in that they only denote the government's right to seize property, as opposed to the actual seizure of it. The IRS will often "perfect" a tax lien by filing notice with states and other creditors that it is first in line to receive payment for back taxes. Having a federal tax lien will substantially downgrade one's credit score, and in many cases this lien must be paid off in full before the taxpayer can obtain financing.
If there is a federal tax lien on your home, you must satisfy the lien before you can sell or refinance your home. There are a number of options to satisfy the tax lien. Normally, if you have equity in your property, the tax lien is paid (in part or in whole depending on the equity) out of the sales proceeds at the time of closing. If the home is being sold for less than the lien amount, the taxpayer can request the IRS discharge the lien to allow for the completion of the sale. Taxpayers or lenders also can ask that a federal tax lien be made secondary to the lending institution's lien to allow for the refinancing or restructuring of a mortgage. The IRS currently is working to speed requests for discharge or mortgage restructing to assist taxpayers during this economic downturn.
To assist struggling taxpayers, the IRS plans to significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances. The IRS plans to review the results and impact of the lien threshold change in about a year.
Also, the IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA).
Additionally, the IRS will modify procedures that will make it easier for taxpayers to obtain lien withdrawals. Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it.
For more information, see IR-2011-20, IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start; Major Changes Made to Lien Process, IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell and File a Notice of Federal Tax Lien.
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...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
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By Luke Arthur, eHow Contributor updated January 09, 2011
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A federal tax lien is a device that is used by the Internal Revenue Service to help collect late taxes. If you are behind on your federal taxes, the IRS could place a lien on your property to guarantee the eventual payment of your back taxes.
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Federal Tax Lien
A federal tax lien is an encumbrance that the IRS can put on a piece of property. With this type of encumbrance, it will be impossible to sell a piece of property without paying off the debt first. For example, the lien could be placed on your home and you would have to use the money from the sale of your house to pay back the IRS before anything else can be done with the money.
Joint Ownership
If a piece of property is owned jointly with two or more parties, the tax lien could affect all of them. This is true even if the joint owners do not all owe the tax liability. If one of the joint owners has a tax liability that has not been paid in the IRS places a lien on the property, it will affect the other owners of the property. The property can still not be sold unless the tax obligation is fulfilled.
Removing the Lien
Once a lien is placed on the property, you can potentially get it removed before selling your property. If you want to have the lien removed, you need to pay the tax bill to the IRS. Once you pay the tax bill that you owe in full to the IRS, they will begin the process of removing the lien. It can take up to 30 days to have the lien removed from your property.
Payment Arrangements
If you cannot afford to pay the full tax liability, you may be able to work out a payment arrangement with the IRS. In some cases, they will accept an offer in compromise. This is a scenario in which you offer to pay less than the full amount owed to settle your account. Another option that you might consider is the installment agreement. This allows you to make periodic payments to the Internal Revenue Service until your bill is paid. With this arrangement, you will also have to pay interest on the tax debt.
Laaa lalala la la la laaaaaaa! No reason to mention the bad, look for the good! Don't worry, be happy!
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
SCHENECTADY -- Cornell's, the landmark Italian restaurant in downtown Schenectady that has fallen on hard times lately, will get an infusion of capital under its new ownership.
Cornell's has been mired in bankruptcy for the past 12 months, but there is a plan in place for the restaurant to be purchased by The Daily Gazette owner and publisher John E. N. Hume III and his wife, along with business partner George Ryon.
The new ownership -- which is not expected to change the classic Italian menu or cooking staff -- is being well-received by local officials who say it will save a part of the city's culinary and cultural history that might have been lost if not for the largesse.
"You have a group of investors who are planning upgrades and who are going to preserve the Cornell's tradition," said Ray Gillen, chairman of the Schenectady Metroplex Development Authority. "They're making a very substantial investment. They are going to maintain that great legacy."
Cornell's has been a Schenectady mainstay for more than 60 years and was originally located on Van Vranken Avenue. But owner JoAnn Aragosa was encouraged to relocate to two buildings on North Jay Street in 2002 by local economic development officials to become the "cornerstone" of the city's Little Italy effort, according to documents filed in U.S. Bankruptcy Court in Albany.
Aragosa was also encouraged to take on more debt "than reasonably could be expected to be supported" by the restaurant's revenues, the documents also state.
Cornell's fell behind on a mortgage held by the New York Business Development Corp., which finances small businesses in the state, and it also fell behind on city property taxes and state sales taxes as the restaurant became "overextended" in the new location, according to the bankruptcy filings.
Schenectady Metroplex also extended credit to Cornell's, although the unsecured loan and the grant were drafted under a previous administration and board before Gillen arrived. The authority no longer structures its loans in such a way.
Cornell's employees referred questions to Ryon, who could not be reached for comment Friday at his home, which is listed as the address for the new limited liability company that is expected to obtain ownership of the restaurant.
Richard Weiskopf, the Albany attorney who is representing Aragosa in the bankruptcy case, declined comment about the new owners and instead referred questions to Brian Kremer, who he said is their attorney. Kremer did not return calls seeking comment.
The bankruptcy plan for Cornell's does not make any mention about new owners, although it does set out a plan to repay nearly $1 million in back taxes and secured loans from the NYBDC. Unsecured creditors like Metroplex are expected only to receive a small portion of their original investment, if anything. It would be expected that the new owners would maintain that repayment plan.
Schenectady's Cornell's files for Chapter 11 Add a comment
William M. Dowd , Upstate NY Restaurant Examiner July 24, 2010 - Like this? Subscribe to get instant updates. .
The main dining room at Cornell's.
SCHENECTADY, NY -- It may be tough to get a table at Cornell's, but behind the scenes the venerable local Italian restaurant is in tro
uble.
Owner JoAnne Cornell Aragosa has filed for Chapter 11 in U.S. Bankruptcy Court to protect itself from creditors, even though Aragosa insists business is good, up more than 20% since last year. She said the upscale restaurant will continue in operation.
39-45 North Jay Street Corp., the real estate holding company that owns Cornell's, says the business owes $162,257 in property taxes. The business also owes the Schenectady Metroplex Development Authority $224,000, according to the filing. That situation is believed to stem not from the current location, but from its former Van Vranken location when it needed a loan.
The current location is 39 North Jay Street, where Aragosa moved the business in 2004. Her parents, Nicholas and Pasqualina Cornell, founded a neighborhood bar in 1943 that grew into the restaurant. They sold it in 1977, but Aragosa and her husband, the noted accordion-squeezer Amerigo (Merf) Aragosa, got it back into the family in 1997. .
Business Review Cornell's Restaurant owes nearly $155,000 in state sales and withholding taxes, nearly twice the amount that forced another popular restaurant in Schenectady's Little Italy to close last March.
The unpaid taxes for the restaurant at 39 N. Jay St. total $154,528, according to Tom Bergin, a spokesman for the state Department of Taxation and Finance.
The unpaid taxes have accrued over several financial quarters, dating to January 2006.
Cornell's owner JoAnn Cornell .. Aragosa didn't return messages seeking comment, but her attorney, Gary Lombardi, said the business has a repayment plan worked out with the state.
"The delinquency won't jeopardize the existence of the company," Lombardi said.
He added, "We're working to resolve the delinquency and it's a satisfactory relationship for all parties involved."
Cornell's moved from Van Vranken Avenue to North Jay Street four years ago to anchor a neighborhood dubbed Little Italy, which features several long-standing Italian businesses, new sidewalks, landscaping and a decorative archway above the street.
To finance the move, Cornell's relied on a $550,000 loan from the New York Business Development Co., and a $235,000 loan and $235,000 grant from the Schenectady Metroplex Development Authority .. .
Cornell's payments to the New York Business Development Co. and the Metroplex are current, officials said.
Bergin couldn't comment specifically about Cornell's. But, generally speaking, the state tries to work with business owners to set up repayment plans for delinquent taxes.
In cases where the problem doesn't get resolved, the state can seize the property, shut down the business and auction the contents to recoup the money. That's what happened to Luigi's Restaurant at 1125 Barrett St., a couple of blocks away from Cornell's.
The state seized Luigi's in March after it racked up $81,223 in delinquent sales and withholding taxes over a three-year period.
The seizure occurred nearly a year after the restaurant's longtime owner, Marlene A. Hill, was stabbed to death in her home by her grandson. Following the seizure, an auction of the restaurant's equipment and furnishings generated $24,000.
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
I thought that the head honcho at the gazetto was picking up their 'deblt tab'....no?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I thought that the head honcho at the gazetto was picking up their 'debit tab'....no?
With who? They owe the City, County, State and Feds. And the Feds will not be buffaloed. Wonder how many jobs this was supposed to create? lol. The entire DEM house of cards is collapsing. Every single pronouncement was a lie and finally a majority of City residents have eyes wide open. At some point the County resident will also wake up. You can't polish a turd.
Laaa lalala la la la laaaaaaa! No reason to mention the bad, look for the good! Don't worry, be happy!
This is not unusual. Many Upstate cities move a profitable restaurant from a neighborhood to Downtown with a PILOT and tens of thousands of our taxpayer dollars. This should be a model for other struggling cities- lol. Don't fret Landslide's new EMS tax will be just the tonic for rebirth.
New York Business Development Corporation (NYBDC) is a complement to conventional banking, working in partnership with banks to provide term loans, many of which do not meet the requirements for traditional financing. Our goal is to be more creative in our underwriting. In many cases, we include multiple participations, SBA guarantees, flexible amortization and long-term payouts.
NYBDC also manages the Empire State Certified Development Corporation which is otherwise known as The 504 Company. Empire State CDC is licensed by the U.S. Small Business Administration (SBA) to provide the SBA 504 Loan Program – a fixed-asset economic development program designed to promote growth and job creation in small businesses -- to eligible New York State businesses.
A third component of NYBDC is the Statewide Zone Capital Corporation (SZCC), a privately owned loan and investment fund whose capital is used to promote the expansion and growth of new and existing businesses located within New York’s participating Empire Zones.
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Logged
More evidence of the great renaissance taking place under Death Ray and his moron bored. 
With who? They owe the City, County, State and Feds. And the Feds will not be buffaloed. Wonder how many jobs this was supposed to create? lol. The entire DEM house of cards is collapsing. Every single pronouncement was a lie and finally a majority of City residents have eyes wide open. At some point the County resident will also wake up. You can't polish a turd. 
