Federal and State Tax Liens

Legal Help for Business Owners Facing IRS and Indiana DOR Tax Liens

The Indianapolis tax attorneys of Dutton Legal Group focus exclusively on helping self-employed individuals and businesses resolve tax problems with the IRS and the Indiana Department of Revenue.

A great deal of our work is representing clients facing federal and state tax lien matters. Our experience gained over years of negotiating with, and litigating against, the IRS and state tax authorities gives our clients clarity and hope.

Our Tax Lawyers Are Prepared to Help

Being hit with a state or federal tax lien is generally the last symptom of a bigger problem: You owe taxes and have not been able to pay them. Why?

Dutton Legal Group is here to help you change that picture. Beginning with discovery, we can identify the problem, assist you in resolving the tax lien, and help you restructure your finances and change the behavior that got you to this point.

I just got a tax lien on my home. How can I prevent or remove the lien?

With unresolved tax debt, there is a legitimate worry that the IRS or state taxing administration is going take collection actions, such as seizing property (homes, vehicles, bank accounts, etc.), shutting down a business, and/or garnishing wages or Social Security benefits.

We remove this financial fear by requesting the IRS or state taxing administrations place any balances on a temporary hold. Then we resolve the tax debt, making it unlawful for the IRS or the state taxing administration to take collection actions.

You will sleep easier knowing that, once and for all, your tax situation is under control and collection action cannot lawfully happen.

Federal / IRS Tax Lien Information

A federal tax lien will attach to your home and assets. The purpose of the lien is to prevent you (the delinquent taxpayer) from selling your property and using that money to pay other creditors ahead of the IRS. The tax lien legally places the IRS in front of most other lenders.

Stopping the IRS from filing a federal tax lien or removing a federal tax lien, is contingent on convincing the IRS that not filing the lien is in their best interest and that other options will benefit the IRS more.

That is where our experienced tax attorneys become indispensable. If a tax lien has been placed on your property, we can remove or lift the lien through legal intervention with the IRS and work out a viable, practical plan for all your debts.

Dutton Legal Group will determine the source of your tax lien and analyze your overall financial situation to establish the best tax balance resolution action to take to prevent or remove the IRS tax lien, including:

  • negotiating a monthly payment plan to repay back taxes
  • working out a “currently not collectable status” with the IRS
  • a well-written Offer in Compromise, if appropriate
  • negotiating a full or partial penalty abatement
  • establishing that auditing errors or technical mistakes occurred and filing an appeal
  • taking advantage of Innocent Spouse Relief if applicable
  • negotiating a tax lien subordination or release if you wish to sell or refinance your home

Once the lien is filed, it is very important that you do not ignore IRS notices and call a tax attorney immediately.

Indiana State Tax Lien Information

In Indiana, a tax warrant is the term for a state tax lien. When an Indiana taxpayer fails to pay an assessed tax liability, the Indiana DOR may file a Warrant for Collection of Tax against that taxpayer. It is important to take immediate action.

You may prevent a DOR tax lien by paying the full amount to the state before the lien is filed. If your tax problems reach the warrant phase, you are responsible for paying the entire amount due.

Our tax attorneys may intercede through negotiations with the Indiana DOR to appeal the tax warrant, arrange for payment plans, negotiate a “hardship” status with state taxing agencies or negotiate an Offer in Compromise or other remedy. The alternative is to accept the cost and consequences of the warrant.

The tax warrant is filed with all county clerk’s office in which you have assets. The warrant becomes a public lien on your property and may become a levy—the actual taking of the property to fulfill the tax debt. It is also published on a credit report and title search.

Warrants are generally the responsibility of the sheriff or a collection agency.

The sheriff may choose any of the following methods of collection:

  • sell your property at an auction,
  • wage garnishment, or
  • levy your bank account.

The collection agency will collect your total balance and may choose the following methods of collection:

  • wage garnishment or
  • levy your bank account.

Call Dutton Legal Group about Your Federal or State Tax Lien Issue

Our clients are hardworking small business owners and sole proprietors who are willing to confront their tax obligation and take the steps necessary to “get current” with the IRS.

For these individuals, we work tirelessly to help them end tax debt and controversy once and for all and to once again look to the future with confidence and pride.

Contact us without delay or call (800) 334-0255. Find out how we can help get your business back on track with effective tax balance resolution and possibly avoid or remove an Indiana state or federal IRS tax liens.

Let Us Help:

Unreported Crypto Gains? How Indiana Taxpayers Can Fix Past Tax Returns

Quick Answer: If you failed to report crypto gains on previous tax returns, start by reconstructing your transactions and calculating what you actually earned. From there, we can determine which returns need correcting. Accidental omissions can generally be...

Types of Prepaid Expenses to Optimize Your Indiana Business’s Cash Flow Before Dec 31

 Quick Answer: If you run a cash-basis business, you can lock in immediate tax savings on upcoming 2027 operating costs by paying those vendor bills before December 31. Under the IRS 12-month rule, that prepayment cuts your 2026 taxable profit dollar for dollar,...

Dutton Legal Group LLC’s Take: How Much Cash Should A Business Have On Hand?

Quick Answer: Keep three to six months of baseline operating expenses in liquid reserves, alongside a separate tax account holding 15% to 30% of weekly gross receipts. Having that buffer with a Quick Ratio of at least 1.0 means you'll protect daily operations without...

How The Bad Business Debt Deduction Could Lower Your 2026 Indiana Business Taxes

Quick Answer: Uncollectible business receivables convert into ordinary losses that reduce your active net profit dollar-for-dollar without a ceiling. To lock in this tax offset before year-end, you'll need to execute a formal general ledger charge-off on your...

Can ChatGPT Help With Taxes? A Guide for Indiana Taxpayers

 Quick Answer: ChatGPT can explain tax terms, summarize IRS notices, and give you general information about collection options. But it should not be the only source you use to calculate things like an Offer in Compromise or which path to choose for your IRS...

How To Fix Common QuickBooks Online Problems Indiana Small Business Owners Face

Quick Answer: To fix common QuickBooks Online problems, audit your bank feed queue to ensure transactions are matched to open invoices and transfers rather than blindly clicked as "Add," which eliminates duplicate revenue and miscoded expenses. From there,...

How to Elect S Corp Status: Indiana Tax Resolution Guide

Quick Answer: If you missed the IRS deadline, you can still secure retroactive approval and protect your business's tax savings. Through IRS late-election relief, qualifying businesses can backdate their S corp status up to three years and 75 days. Discovering...

The Indiana Small Business Q3 Payroll Checklist for a Painless Year-End Close

Quick Answer: Your pre-year end payroll checklist should include reviewing new OBBBA wage codes, collecting missing 1099 tax forms, and aligning your payroll accounts with your general ledger. Completing this cleanup in September protects your business against...

What Are the Tax Mistakes New Indiana Business Owners Make?

 Quick Answer: Some of the biggest tax mistakes new business owners make include using personal credit cards for business expenses, guessing on startup cost write-offs, and failing to keep track of receipts for deduction proof.Key Takeaways:Opening a...

What Are the Disadvantages to Sole Proprietorship for Growing Indiana Business Owners?

Quick Answer: The primary disadvantages to a sole proprietorship for growing business owners are unlimited personal liability and a mandatory 15.3% self-employment tax on 100% of net profit. Once annual net profit exceeds $40,000, remaining a sole proprietor...

Ready to come in for an appointment?

Click here to schedule a time to meet with us. We will NOT make dealing with a tax professional as painful as it’s been in the past!