Here are some FAQ's on Tax Liens. This may help you better understand what they are, why they are issued and how they can be released.
Q: When a tax lien is placed on a property, how does someone know?
A. You will know that the IRS has an issue with a liability when they send an assessment and want payment immediately. You then have ten days to make a payment. Failure to address that issue will cause the IRS to begin the process of a federal tax lien. You will receive, by mail a notice from the IRS that it has been filed.
Q. What effect does a tax lien have on me?
A: As soon as it is filed all your creditors are notified greatly affecting your credit report and credit score and the IRS has claim to your property above any creditors. Now that a lien is being placed and all creditors are aware, it makes it very difficult to get any type of credit extended. If you pay the debt, you can request that the tax lien be removed from your credit report.
Q. When a lien is filed, what type of property does it affect?
A. All current and any future property a taxpayer has or will acquire is affected. The rule is open to understanding and can cover just about anything tangible or intangible.
Q. Can you get rid of a tax lien?
A. The answer is YES, it can be released if you get back into amenability with your taxes. Releasing it would require you to pay your liability in full, file an Offer in Compromise, a bond that guarantees payment or waiting for the statute of limitations to expire.
Q. How can you avoid a lien in the first place?
A. You can avoid it by staying current with your taxes. If you ever find that you are not able to pay your tax debt, then immediately contact the IRS and use one of the many ways available to settle your debt instead of ignoring it or not filing your return.
Q. What makes the IRS file a lien against a property?
A: If you owe the IRS $10,000 or more in back tax, filing a lien would assure them the money that is owed. They have been known to file a lien for smaller amounts, especially if they feel the taxpayer is being somewhat evasive about their tax debt.
Q. Is a tax levy the same as a tax lien?
A: A levy is the actual seizure of property in question and of all assets including bank accounts and the garnishing of wages. A lien is more like an "invisible" claim on the property in question.
If tax liens or levies are a threat to your property or assets, seek the advice from a professional tax relief attorney.
For more information like this and other related tax issues, visit Blayne Penton's website about IRS Tax Relief. We can prevent IRS bank & wage levies, prevent or lift tax liens, stop wage garnishment and will continually strive to get you the best possible settlement.
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