If you are worried about or faced with a tax lien, The Tax Relief Center can help you. Take a moment to answer a few simple questions so that we can connect you to experienced tax relief specialists and lawyers in your area who can provide you with a free tax relief consultation.
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Tax Lien Help
A lien is the legal claim of one person or entity upon the property of another person or entity in order to secure the payment of a debt or financial obligation. A tax lien is one of the enforcement measures that the IRS commonly uses to enforce its claim against you for taxes you may owe.
Tax liens, filed through county clerks in the county where you live or where you do business, are public records stating that you have an outstanding federal or state tax debt.
Tax liens can be a real problem for several reasons: They can make it very hard for you to secure credit and borrow against your property. Tax liens may also make it difficult for you to be approved for an auto loan. They can also make it hard for you to sell your property as long as the lien appears on your public record.
In these times of financial struggle, many individuals including families and business owners find themselves facing what is called a tax lien. A serious legal circumstance, a tax lien results from an often innocent inability to pay your taxes. In general, a lien is the legal claim of one person or entity upon the property of another person or entity in order to secure the payment of a debt or financial obligation. The IRS commonly uses tax liens to enforce its claim against you for taxes you may owe.
As if wrestling with financial obligations and debt weren't enough to worry about, a federal tax lien could impact your life substantially. If you fail to pay or are delinquent in paying income or any type of federal tax such as (but is not restricted to) income tax, gift tax, or estate tax, then all of your property is subject to a lien.
What kind of property does a lien involve? Some of the most significant examples of vulnerable property are your house and car. If you own a business, even your accounts receivable are susceptible to a tax lien. Property obtained after the lien is filed is also subject to the lien!
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To prevent a lien from taking effect, you are required to pay the tax within ten (10) days of the IRS's written notice and demand. If you do not pay within this time, the lien becomes active and retroactive (including the ten day period).
In addition to a federal tax lien, state governments can also impose liens on your property and may, in some states, have priority over the federal government. In most cases, if there are two or more creditors (the government is treated as a "creditor" with respect to unpaid taxes), the creditor whose lien went into effect first has priority over subsequent tax liens.
Along with the impact on your property, a filed tax lien may also harm your credit rating. In effect, this can prevent you from getting a loan to buy a house or car, obtaining a new credit card, or signing a lease.
Not only does a federal or state tax lien remain effective until it is fully paid off, but generally additional interest and other fees (e.g., state or other jurisdiction charges to file and release the lien) will be tacked onto the total amount you owe.
The IRS must file a lien within the statute of limitations which for taxes assessed on or after November 6, 1990, is typically ten (10) years. If the federal government fails to file a lien within the statute of limitations then the lien is unenforceable and should release automatically (unless the IRS has filed it again).
Certainly, tax terms and law can be very intimidating and confusing. For instance, a federal tax lien is very different from tax levy in that a lien encumbers property to secure the payment of a tax whereas a levy is the actual act of seizing property. It is imperative that you know all your legal rights and get the help you need before you are adversely affected. This is why many employ expert help such as a tax attorney or tax lawyer.
To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a free confidential tax relief consultation at absolutely no obligation.
Perhaps you've heard about tax lien sales or tax lien investing but don't know how they could affect you. Tax lien sales and investors can compound a taxpayer's attempts to remedy their tax problems. For instance, when you have unpaid taxes and a lien is filed, your lien is subject to being purchased from the government by a tax investor purely for investment purposes. You could then be subject to high interest rates on the lien until you pay it off or even the risk that the lien holder may take your home should foreclosure occur.
Tax liens, filed through county clerks in the county where you live or where you do business, are public records stating that you have an outstanding federal or state tax debt.
Tax liens can be a real problem for several reasons: They can impact your credit by making securing credit and borrowing against your property very challenging. Tax liens may also prevent approval of an auto loan. And, tax liens can make selling your property next to impossible as long as the lien appears on your public record.
To see what tax relief can do for you, take a moment to answer a few simple questions, and you'll be provided with a free confidential tax relief consultation - at absolutely no obligation.
