Tax Lien
Overview
A Federal Tax Lien is the IRS’s legal claim against your property as a security for the payment of a tax debt. It is usually the first step in the collection of a neglected tax debt and, if not attended to, could be followed up with a Tax Levy. A Tax Lien can be placed against all or one of the following;
- bank accounts
- your wages
- your investment accounts
- a car
- a boat
- Your home
The IRS will begin by sending you a Notice and Demand for Payment. If you neglect to pay, they will follow up with filing a public document known as a Notice of Federal Tax Lien. This notice alerts creditors that the government has a legal right to your property. This will make it extremely difficult to get additional credit or apply for loans. If you receive either of these notices, call us immediately so we can help resolve the problem before it gets out of hand.
Removal of a Tax Lien
Once the IRS decides to place a lien against your property, it will become very difficult to get it removed until the debt is satisfied. There are only a few options available to removing a Tax Lien;
- Pay Your Debt
- Discharge of Property
- Subordination
- Withdrawal
Challenging Your Lien
You may be able to challenge or remove your tax lien completely. There are laws within the Federal Tax Code which provides for this. The IRS is also offering a Fresh Start Initiative, which may help you settle your debt and get the lien removed. If you have currently been issued a Tax Lien, don’t delay in calling us for help. Our tax consultants are standing by ready to assist you and walk you through the intricacies of the process. Don’t go this alone! Protect your rights and seek professional help.