Lien Subordination

Lien Subordination occurs when the Department of Revenue allows its lien to take a lower priority than someone else's lien. Lien Subordination is made at the discretion of the Department of Revenue.

An instance where the Department of Revenue may allow its lien to take a lower priority to a "junior" lien is when the taxpayer is attempting to refinance a home mortgage to obtain a lower interest rate and the original mortgage has a superior position to the Department of Revenue lien.

The Department of Revenue may also subordinate a lien if doing so would speed collection of the tax. For example, a lien may be subordinated if doing so would allow a farmer to receive a loan to harvest a crop.

To be considered for Lien Subordination the taxpayer must complete and submit the Application for Certificate of Subordination of Kentucky Tax Lien (23K) to the Department of Revenue.

Inquire about Lien Subordination