A tax lien is a legal claim the government can place on your property in order to collect unpaid taxes. The lien gives the IRS a security interest in your property to force the sale of your assets if you don’t pay up. If you have a tax lien filed against you, take action right away to get it released. Otherwise, you could lose your home or other property.
Tax liens are structured by complicated federal laws, but even the IRS makes mistakes. Understanding your rights is important in order to combat one.
What is a tax lien?
A lien is a legal right that a creditor has to take assets if the person fails to repay a debt. There are different types of liens, but they are all structured to protect the creditor’s interest in case the person fails to repay a debt.
How do tax liens arise?
When a taxpayer fails to pay a debt, a lien is filed against them. The IRS will file a tax lien in the public records, which alerts creditors to which the taxpayer owes money to. The government can and will take away unprotected assets as payment for tax debt. A tax lien can also have a negative effect on your credit, making it harder to get loans.
How do I get rid of a tax lien?
If you ever find yourself with a tax lien, it is crucial to take action as soon as possible to get rid of it. The only way to get rid of a tax lien is to pay in full.
But what if I don’t have the money to do so?
The good news is that there are experienced tax attorneys that can help you with your tax issues. At Elite Tax Resolutions, we have years of experience working with taxpayers facing the IRS. We’re located in Corona, Ca, but we help clients nationwide. We understand the ins and outs of the system, and that means getting the best results for our clients. If you’re struggling with a tax lien, don’t hesitate to visit our website.
