Assets That Are Subject to Liens from the IRS
If you or your business has an outstanding tax debt due to the IRS, there are several things you should think about. Once the IRS begins making contact with you about the consequences of your back taxes, you could face interest, penalties and tax liens. A tax lien is a document that is usually filed with a local county government (in most cases) notifying the general public that you have an unpaid tax debt. A tax lien can be detrimental to you for many reasons including:
• Your Credit: Tax liens are nearly always noticed by credit bureaus, so you should expect that your credit score will take a pretty big hit if the IRS files a lien against you. Even if the lien is eventually lifted, the fact that you once had a lien on your property may stay on your credit report for as long as 10 years.
• Your property: Tax liens are attached to a taxpayer’s property (personal property like your home). So, if you go to sell your property while the lien is still attached to it, the IRS will be paid from this sale before you receive any money.
Preventing a Tax Lien
The best thing that you can do to prevent a tax lien is pay your tax debt. It’s that simple. And, if you cannot pay the debt in a lump sum, you can apply for an installment agreement. This allows you to make lower monthly payments over time to eventually pay the debt without incurring a tax lien or levy. The IRS actually is required to grant you an installment agreement in some cases, so it is definitely an option to look into if you are trying to negotiate with the IRS and cannot pay your debt all at once.
Options for handling a tax lien
If you do find yourself with a tax lien filed against you, there are things you can do. Recently, the IRS implemented a new program called the “Fresh Start Initiative” which allows you to request that a tax lien be withdrawn, in some cases even if the debt has not yet been paid in full. This has helped thousands of taxpayers over the last few years. A reputable tax firm can be an unbelievably strong resource for taxpayers battling tax liens. You may feel like you need help sorting through the paperwork and options and would like advice on how best to proceed in your unique case.
Success Tax Relief has over thirty years of experience and specializes in helping clients with tax liens. We are very familiar with the new Fresh Start program and can help determine whether you qualify. If you do, we can help you file all the necessary paperwork and even if you do not, we can help you make a plan for solving this problem.If you have received a notice from the IRS that they have placed a lien on your property, the time to act is now. Contact Success Tax Relief today, we can help you get through this!