My brother owes the IRS $127,523.11 from tax Yr 2010 and $85,564.23 from tax yr 2011 from a business, he does not owen a house and has no assets, if he files for chapter 7 what happens to the Liens ?
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Since you state that the taxes are from a business, I have to assume these taxes relate to payroll taxes, not income tax and that he was hit with a "6672 penalty". If my assumption is correct these taxes are not dischargeable and therefore, nothing will happen with the lien.
If the taxes are dischargeable, meaning they meet every prong of the test to discharge taxes, the IRS, may agree to release its lien shortly after entry of the discharge without further payment. In this situation I hope your brother is hiring an attorney as doing so will make the process of persuading the IRS to release its lien easier.
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the tax lien are from money taking out of his IRA for the businessComment
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