IRS Lien – Help!

I Received an IRS Lien Notice – What is It and How Does It Work?

Did you say you just received an IRS Lien?  If so, do not take it lightly.  Tax liens are very serious business when back taxes are owed to the IRS.  The Internal Revenue Service utilizes the tax lien to guarantee they receive their money for back taxes.  Do you know how an IRS Lien can affect you?

What is a tax lien?

To understand how an IRS lien can affect you, first understanding what an IRS tax lien goes a long way.

An IRS lien, or tax lien as its often referred, is specifically defined as a claim the government (IRS) makes on your property, including real estate and other assets, when your income taxes are past due.  This is the initial step before the IRS moves to the next step of a tax levy.

A tax levy is as bad as it gets.  A tax levy is the actual seizure of property to pay taxes owed. Tax levies often include drastic steps such as garnishing your wages, seizing assets, and bank accounts.

Tax Lien – The Affects

Do you understand the ramifications of an IRS tax lien?  Most taxpayers do not.  An IRS lien, due to unpaid taxes, can affect you and your family several ways:

  • Credit – IRS liens normally do not appear on credit reports. However, the IRS can file a public notice of the tax lien.  This notice notifies creditors the government has a right to your property possibly jeopardizing your loanability.
  • Home Sale or Refinance – During title searches, IRS tax liens often make their presents known.  The equity in your home will, with high probability, have to be used to pay your taxes to close.
  • Timewaster – Dealings with the IRS takes time and the help of a tax professional can get you through the red tape easier.
  • Notice of Intent to Levy – After the issuance of a federal tax lien, if you still do not pay your tax bill, then the IRS can file a Notice of Intent to Levy.

Removal of an IRS Lien

The easiest and most simple way to get rid of, or remove, a tax lien or tax levy is to pay your tax bill.  Common sense right?  In most cases, it is the only way to stop the lien.  If you cannot pay the tax bill all in one lump sum, you have several options available.

  • Set up an IRS payment plan
  • Ask for an Offer in Compromise – This is an offer of the settlement of back taxes for a lower amount than what is owed.
  • File an Appeal – Ask for a collection due process hearing from the IRS Office of Appeals.
  • Bankruptcy – Not a preferred option, but can, in some circumstances, remove the tax debt.

We agree IRS tax liens are frustrating and scary.  It is meant to be.  It is an effective tool to entice movement towards the payment of a tax debt.  If you still do not pay it, then the tax levy is next.  Let the tax professionals at Tax Relief Systems help you before it gets to this point.  We can remove the stress and put you back on the right path.  Call today for your free no-obligation consultation. (877)829-0040