Having a tax lien placed on your property and financial assets can be alarming and stressful. Tax liens are attached to your assets if you neglect to pay your taxes or have a large amount of taxes due that have not been paid on. If you are struggling and need tax help, a tax specialist can provide you with experienced advice about tax liens.
What is a Tax Lien?
If you fail to make payments on your taxes or tax debt, the government can make a legal claim against your property. This legal claim against you is called a federal tax lien. The tax lien protects the government’s interest in all your property, including personal property, real estate, and financial assets.
The government will place a tax liens on your property if you refuse or neglect paying the owed taxes, the IRS assesses your liability and the balance is due, or the IRS sends you a notice and demand for payment of the owed taxes. The IRS will publicly file the tax lien on the Notice of Federal Tax Liens, which alerts creditors that the government has legal claims to your property.
How a Tax Lien Affects You
A tax lien can affect your assets, credit, business, or bankruptcy. A tax lien is attached to all of your assets, including property, vehicles, securities, and future assets that are acquired during the duration of the lien. Your ability to get credit or have good credit may also be affected once the IRS files a Notice of Federal Tax Lien. Your business property, along with all rights to your business property and accounts receivable, will also be attached to the tax lien. If you file for bankruptcy in the future, your tax debt, tax liens, and Notice of Federal Tax Lien may carry over after the bankruptcy.
How to Avoid a Tax Lien
The best way to avoid a federal tax liens from the IRS is by simply filing and paying your taxes in full and on time. If you struggle to file your own tax return, a tax specialist can help you file your taxes while getting you the best deductions. There are also payment options available for people who can’t pay the full amount of taxes owed to help you settle your tax debt over time. Tax attorneys can help you choose the payment option that is best for your financial situation. If you can’t file your taxes or pay them on time, don’t neglect any letters or correspondence you get from the IRS. It is best to have a tax attorney review any documentation from the IRS, so they can help you respond in a timely and efficient manner.
How Tax Specialists Can Help Get Rid of a Tax Liens
A tax attorney specializes in the laws and regulations surrounding federal, state, and local taxes. Tax specialists advocate for their clients with their expertise in tax codes, accounting rules, and contract law. A tax attorney can represent you during negotiations with the IRS over tax disputes. They can also help you with tax liens through a discharge of property, subordination, or withdrawal.
Discharge of Property
A discharge of property removes the tax liens from specific property. A tax specialist can help you determine if your property is eligible for a discharge. There are several Internal Revenue Code provisions that determine if your property can be discharged from the lien; a tax attorney can go through these provisions with you and help you apply for a Certificate of Discharge From Federal Tax Lien.
Subordination
Subordination does not remove the tax liens against your property, but it allows other creditors to also vie for your property along with the IRS. A tax specialist can go over this option with you and determine if it’s the right move for your property and financial situation. A subordination can make it easier for you to get a loan or mortgage for your property with a tax lien. A tax lawyer can also help you apply for a Certificate of Subordination of Federal Tax Lien.
Withdrawal
A withdrawal from your tax lien removes the public Notice of Federal Tax Liens, which ensures that the IRS is the only one who can go after your property. This means that other creditors won’t be able to compete against the IRS, but you will still be liable for the owed taxes. A tax specialist can help you apply for the withdrawal and go over your best options.
Tax Liens & Tax Specialists
If your property and assets have a tax liens placed on them by the IRS, consider hiring a tax specialist to relieve the issue. Tax attorneys have knowledge and experience working with the IRS and federal tax laws. They use this expertise to help clients who are affected by tax liens, which can be overwhelming. Save yourself the stress and work with a tax specialist so that your tax lien are handled in the best way possible.
