What is a Tax Lien?
A tax lien is a legal governmental asset claim on a business or individual. It’s a highly aggressive method the IRS uses to guarantee you pay your taxes back. A tax lien gives the IRS priority over any lender or creditor should your assets need to be seized. If you don’t act quickly, the government may also claim and sell your assets to put towards your tax debt, also known as a tax levy.
The only way for you to receive a tax lien is if you owe taxes, are unresponsive to their Notice and Demand for Payment, neglect your tax debt, or refuse to pay on time.
How A Lien Affects You
- Assets — When a federal lien is issued to you, the government is given priority interest to your current and future assets.
- Credit — Once the IRS files a Notice of Federal Tax Lien on public record, it may jeopardize your ability to get a loan or refinance.
- Business — The lien attaches to all business property and to all rights to business property, including accounts receivable.
- Bankruptcy — If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.
Property and Loans
A lien directly negatively affects your life. The IRS may give you a written warning, but you generally have a week until the IRS decides that a lien or a levy should be on your property or assets. It completely halts your ability to refinance, buy, or sell your property and you often won’t qualify for a personal or business loan.
The lien is on public record which means that when a company does a background check, companies may reject you from getting a job or renting a home until you resolve your tax lien. When you sell or refinance your home, any money you gain from the sale of your home is automatically sent to the IRS to pay for your tax debt. A tax lien keeps you from moving forward financially and destroys your quality of life.
Avoid a Tax Lien
The way to avoid a tax lien is to file and pay your taxes on time. As long as you remain compliant with the IRS, you can avoid any tax collections from them. Never ignore their letters or you face worse consequences than a tax lien.
Ways to Remove a Tax Lien
To remove a tax lien from your records, you must pay your tax debt in full. Well, so the IRS says. There is a federal tax relief program for those who struggle paying their taxes back. The best way to negotiate with the IRS and remove your liability is to speak with a tax relief professional.
A tax professional has complete knowledge of the IRS’s aggressive collection practices and how to best negotiate with them to avoid breaking your bank.
Your Tax Lien Resolution Options
Speak with America’s Choice Tax Professionals
America’s Choice Tax is a nationally recognized tax relief company that puts you first.
We’ll examine your tax history and determine the best course of action for your tax lien. Tax liens are complex and you must act fast to negotiate with the IRS.
The IRS will do whatever it takes to get your money. America’s Choice Tax considers you when negotiating with them and acts in your best interest. Contact us today for a free consultation and get a fresh start on your taxes!