Legal Question in Tax Law in Illinois

Hello. My wife operated a business that had to close its doors. I have no connection to her business. My wife still owes the IRS almost 40 thousand dollars. The IRS has threatened my wife with a lean on our home. Since I do not have any responsibility to her failed business, how can the IRS put a lean on my home since we both are co owners of our home? Thank You.

Asked on 11/10/11, 5:11 pm

2 Answers from Attorneys

The IRS may take a lien or levy against anything that your wife has title to, including jointly owned property. However, there may be options for you to challenge the lien or notice of levy when it is filed. Please let me know if I can assist.

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Answered on 11/10/11, 8:03 pm

Virginia Prihoda Law Offices of Virginia Prihoda

The IRS may place a lien on your wife's interest in your jointly titled home, but in today's climate, it is unlikely IRS will enforce its lien by seizing and selling the house to satisfy that lien interest. However, any prospective efforts to refinance are going to be made difficult to impossible by the filing of a lien, and if you need to do that it's a race to see if you renegotiate your deal before IRS files the lien.

IRS will work with your wife for a repayment plan, within confined limits your wife has options. If you or she can borrow the funds to pay IRS, obviously it's better to be making payments to a private creditor than to suffer being indebted to the federal government.

Feel free to call me if you wish to discuss how to move forward.

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Answered on 11/11/11, 7:04 am

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