Due Process Requirements for Property Tax Liens in Pennsylvania

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    • A tax lien can be withdrawn if it will speed up tax collection.Jeffrey Coolidge/Photodisc/Getty Images

      The Pennsylvania Department of Revenue administers tax laws and other revenue programs to fund government services. The state levies a real estate property tax against all real estate property including residential, commercial, business, vacant land and industrial property. There are, however, some property classifications that are exempt from the Pennsylvania real estate tax. These include places of worship, burial grounds, charitable bodies and educational institutions.

    Demand for Payment

    • The first process begins when the IRS sends you a Notice and Demand for Payment. This is a bill that tells you how much you owe in taxes. You are supposed to make the payment no later than 10 days after receiving the notice.

    Notice of Federal Tax Lien

    • A lien is created for the amount of your tax debt if you fail to pay 10 days after receiving the demand notice. By filing notice of this lien, your creditors are publicly notified that a claim has been put against all your property. This lien includes any property you may acquire after the lien is filed. This notice is used by courts to establish priority during bankruptcy proceedings or sale of real estate. The lien attaches to all your property and to all your rights to property. This will destroy your credit rating and you will not be eligible for a loan. The full amount of your lien will remain a matter of public record until it is paid in full.

    Discharge of a Federal Tax Lien

    • If you decide to give up ownership of a property, for instance through the sale of your home, you may apply for a Certificate of Discharge. Each application for a discharge of a tax lien is filed for only one property. If you are selling your primary residence, you are allowed to apply for a taxpayer relocation expense allowance. However, there are certain conditions that you will be required to meet.

    Withdrawing Liens

    • By law, a filed notice of tax lien can be withdrawn if the notice was filed too soon, not according to IRS procedures or if you signed an installment payment agreement on the notice of lien. The lien can also be withdrawn if this is likely to speed up the collection of tax.

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