QUESTION: I owe the IRS a substantial amount of money, but I do not have any money left over at the end of the month after I pay my bills to be able to afford to pay anything on my taxes.  I could refinance my house since the rates are a lot lower now and save a few hundred dollars per month, but the IRS has a lien.  Can you help me?

ANSWER: Yes, it is possible to work with the IRS to have the lien either released or subordinated beneath the lender’s mortgage so you can refinance your home.  In fact, due to the state of the economy there are some new rules where the IRS is expediting the process of releasing or subordinating liens for taxpayers so they can refinance their homes to take advantage of the low mortgage interest rates.  They are especially excited to be able to subordinate a lien when you will be able to take some money out of the equity in your home to pay your tax debt, but that is not always necessary.