How Long Does a Tax Lien Last in Florida?

Tax liens can result in personal stress, instability, and many long-term financial issues. Many taxpayers dealing with these liens on their property wonder how long does a tax lien last in Florida? While it is true that tax liens can expire, the damage they can do to your credit and financial future is severe.

Many taxpayers believe that liens are not as urgent since they will not immediately result in property loss and do not address the liens. Not only can this harm you financially, but you could also lose property.

Tax Lien Basics

A tax lien is a claim the Internal Revenue Service (IRS) places on your property. This legal claim holds that property as collateral. Tax liens are only implemented when you have unpaid taxes and have not responded to notices of the debt or to requests to discuss the debt. A tax lien is not the IRS’s first step in collecting taxes but is one of several collection actions. The IRS may place liens on any property you own.

Unlike bank levies, tax liens do not carry an immediate threat of asset seizure. However, they have significant consequences for your financial standing. The lien is a claim that can be viewed by creditors and scammers alike. The lien can affect your credit score and your ability to obtain credit. You also cannot sell the property or refinance it until the lien is resolved.

Additionally, you could lose the property if the tax debt remains unresolved. The agency can seize and sell the property to cover the debts you owe. This is done through a public tax deed sale. The tax certificate for your property is auctioned off, and the owner of that certificate can eventually file to take ownership of the property after the redemption period.

Do Tax Liens Expire in Florida?

Tax liens can expire, as they have a statute of limitations of between 5 and 20 years. When the lien expires, the back taxes related to that debt can no longer be collected. The countdown begins from the later of the following dates:

1. The date the tax was assessed by the tax agency or
2. The date the tax became delinquent.

However, during that time period, they will continue to cause you financial harm. The IRS or state tax agency can also choose to renew the lien before it expires. This makes the statute of limitations longer.

Additionally, prior to the tax lien expiring, it is likely that the property will be sold. You should use this period of time to find alternate methods to resolve your tax debt so you do not lose your property.

How Can You Resolve a Tax Lien?

The quickest way to resolve a tax lien and have it removed from your property is to pay the entirety of the debt you owe to the state or federal tax agency. If this is not a financial possibility for you, there are other options to resolve the lien, including:

• An installment agreement, which allows you to pay the entire debt in periodic amounts over a set period of time
• An offer in compromise, which can settle the entire debt for less than the full amount
• Disputing the tax lien if you believe the lien was filed in error

A skilled tax debt settlement attorney can look at your financial and personal situation to determine what your options are. When you work with an attorney, they can also negotiate on your behalf with a tax agency. You do not have to deal with this stressful financial situation alone.

FAQs

Q: How Long Can Property Taxes Go Unpaid in Florida?

A: If you have unpaid property taxes in Florida, you should address them immediately. An unpaid property tax is considered delinquent on the first tax day after they have not been paid. The property’s lien can be sold at a public tax deed sale. Property owners could lose their property if they continue not to pay their tax debt.

Q: What Are the Disadvantages of a Tax Lien?

A: Tax liens can negatively impact you and your finances in numerous ways, including:

• Affecting your credit score and making it difficult for you to obtain credit
• Being unable to buy and sell assets without the involvement of a tax agency
• Preventing you from being employed in certain industry fields
• Harming your professional reputation and income
• Increasing your risk of being the victim of scams due to a lien being public information
• Financial consequences on asset sales

Q: How Long Is the Tax Lien Redemption Period in Florida?

A: After a tax lien has been sold at a public tax deed sale, you have a two-year redemption period in Florida. If you pay off your debts within this period, you could recover the property. The period begins from April 1st the year the certificate was issued. If your property is subject to a tax lien, you should not wait to act until the deed sale. You can negotiate with the creditor regarding other ways to repay your debt.

Q: How Long Does It Take for a Lien to Be Removed in Florida?

A: If you have settled the debt that caused the lien, the lien should be released after a short period of time. If the creditor who placed the lien was the IRS, the lien will be released within 30 days after you have paid the debt in full. If you are unable to pay the full debt, you could negotiate other payment options, such as an installment agreement or an offer in compromise. This can pause collection actions.

Finding Effective Resolutions for Your Tax Debt to Resolve Tax Liens

At Tax Smith Tax Attorneys, our team has spent decades helping taxpayers navigate tax codes and address IRS collection actions. We understand the frustration these issues can cause and how overwhelming it can feel to address them. We can help you. Not addressing these actions only makes the issue worse.

Let our team help you review other options to repay your debt and avoid further actions like the seizure of property or other assets. Contact Tax Smith Tax Attorneys today.