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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29650
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: 9 years ago.
Category: Tax
Expert:  Lev replied 9 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 other Tax Specialists are ready to help you
Customer: replied 9 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 9 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.