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What Should You Do When the IRS Files a Notice of a Federal Tax Lien Against You?

What Should You Do When the IRS Files a Notice of a Federal Tax Lien Against You?

By on Sep 9, 2019 in IRS | 0 comments

Getting a notice of a federal tax lien filed against you could mean that you won’t receive the proceeds from any property sales you make. When a lien is in effect against your house or another piece of property, the IRS gets paid out of the sales proceeds before you receive any money. If there’s nothing left when the IRS is done taking its chunk, then you literally get nothing. Worst of all, liens are always a matter of public record when they’re filed. The lien records the full amount owed to the IRS, which means you won’t be able to hide from it. These documents are designed to protect the government’s ability to collect a tax when it seems doubtful that they otherwise would be able to. While this is a scary situation, you shouldn’t get all worked up about it. Take a deep breath and consider the following tips from the experts at Success Tax Relief. Getting Rid of a Lien Once Its Filed Each time the IRS files a lien, they put a taxpayer’s balance due flat down on the books by assessing their liability. They then respond by sending out a bill called a Notice & Demand for Payment document. Those who fail to pay this debt have a lien officially levied against them. As long as you make sure to pay these bills or work with the IRS on an alternative, then you shouldn’t have too much difficulty avoiding a lien. This isn’t too much help if you’re already in the hole, however. Paying your tax debt in full will force the IRS to release the lien within 30 days of when you finish paying it off. If you can afford to do it, then paying the bill outright can completely eliminate the problem. IRS agents are never allowed to keep a lien against those who have demonstrated that they’ve done so. Unfortunately, this may not be an option depending on your specific financial situation and how much tax you owe. Other options do exist for reducing or eliminating a lien, and you may want to explore them if you find yourself in this trap. Discharge of Property Some taxpayers are eligible to receive...

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