Understanding an IRS Tax Lien
What is a Tax Lien? A Federal Tax Lien is the federal government's legal claim against your property when you fail to pay a tax debt.
When they put the lien in effect against you they can seize your property including your home, personal property, financial assets, basically anything you have of value.
A lien exists after the IRS decides how much you owe, sends you a notice of how much you owe them and a demand for payment, and you neglect or refuse to pay the debt on time.
There are several ways to get rid of the lien.
The best way is to pay the debt in full.
The IRS will discharge your lien within 30 days of full repayment.
When conditions are in the best interest of the taxpayer and the government there are some other ways to reduce the impact of the lien.
Discharge of property allows property to be sold free of the lien.
Subordination will not remove the lien, but it allows other creditors to move ahead of the IRS.
This could make it easier for you to get a loan or mortgage.
Withdrawal removes the public notice and assures that the IRS is not competing with other creditors for your property.
How does a tax lien affect you?
If you can't file or pay on time, don't ignore the letters or correspondence you get from the IRS.
If you can't pay the full amount you owe, payment options are available to help you settle your tax debt over time.
If you owe the IRS we advise you to contact a tax professional to help you deal with the IRS.
Just fill out the quote form or calling the number at the top of the page and a tax professional will help assist you.
When they put the lien in effect against you they can seize your property including your home, personal property, financial assets, basically anything you have of value.
A lien exists after the IRS decides how much you owe, sends you a notice of how much you owe them and a demand for payment, and you neglect or refuse to pay the debt on time.
There are several ways to get rid of the lien.
The best way is to pay the debt in full.
The IRS will discharge your lien within 30 days of full repayment.
When conditions are in the best interest of the taxpayer and the government there are some other ways to reduce the impact of the lien.
Discharge of property allows property to be sold free of the lien.
Subordination will not remove the lien, but it allows other creditors to move ahead of the IRS.
This could make it easier for you to get a loan or mortgage.
Withdrawal removes the public notice and assures that the IRS is not competing with other creditors for your property.
How does a tax lien affect you?
- Credit - When the IRS files a Notice of Federal Tax Lien, it may affect your ability to get credit.
- Assets - A lien attaches to all of your assets (such as property, vehicles.
securities) and to any future assets you acquire during the time of the lien. - Business - The lien attaches to all business property and all rights to business property including accounts receivable.
- Bankruptcy - If you file for bankruptcy, your lien, tax debt and Notice of Federal Tax Lien may continue even after the bankruptcy.
If you can't file or pay on time, don't ignore the letters or correspondence you get from the IRS.
If you can't pay the full amount you owe, payment options are available to help you settle your tax debt over time.
If you owe the IRS we advise you to contact a tax professional to help you deal with the IRS.
Just fill out the quote form or calling the number at the top of the page and a tax professional will help assist you.
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