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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
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If an elderly person has a large IRS tax lien and an ...

Customer Question

If an elderly person has a large IRS tax lien and an equally large medicaid bill and funds likely to cover one of them an a little more who gets paid first?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

Federal Tax Lien Act of 1966 granted priority to debts owed the Federal government - thus generally the tax lien would have a priority over the Medicaid lien. See more details and exemptions here -

Please also be aware that the IRS has ten years statute of limitation (starting from the date of assessment) to collect the debt.

Lev and 2 other Tax Specialists are ready to help you
Customer: replied 8 years ago.
Reply to LEV's Post: I read the referencee article and then related material. Is it correct to say that Medicaid or Medicare are not federal liens?
Expert:  Lev replied 8 years ago.

Medicaid is the state program - while the federal law requires from states to have a Medicaid recovery programs - that would be a state lien.

Medicare lien is a federal program - so in case of lien - that would be a federal lien, but it is used very rarely - mainly in case of fraud.