Answers to Many State Tax Lien Questions

Despite the noblest of intentions, taxpayers can get hopelessly confused when it comes to understanding the tangled web of tax information at our disposal. This is especially true when a state tax lien is threatening your household finances. You need answers now regarding state tax lien questions. It is urgent that you consult a tax attorney to help you with your tax debt questions. Tax liens are particularly unsettling because you are at risk of having the government step in and take everything you own.

IRS Tax Lien

Understanding a State Tax Lien

Many taxpayers are not familiar with tax liens or how they are structured. Important details to remember regarding state tax liens are:

  • If a person fails to pay a tax debt, plus any additional penalties and interest, this becomes a lien in favor of the state.
  • A state tax lien allows your personal property (cars, boats or business equipment) as well as real property to be sold.
  • All current creditors (and future creditors) are notified of the lien, affecting your credit rating.

How to Get a State Tax Lien Released

There are two ways to have a state tax lien removed. The first is payment in full, including penalties and interest that have accrued, or full payment based on a settlement agreement. Once the tax debt is paid, the lien is removed although notice that the lien once existed will remain on public record. The second way is to prove the lien was issued in error. If this is the case, public records will show that the lien was issued in error and withdrawn.

Taxpayers with state tax lien questions need to be aware that a tax lien affects an individual’s credit rating. Credit reporting agencies have access to county records, and state tax liens often are shown on credit reports. A tax lien will prevent the sale or refinance of property, and might adversely affect other attempts to get credit.

State Tax Liens Against Property

If a state tax lien is filed against a taxpayer’s property because of a joint liability with another person, there is a solution. It is possible for the individual to pay only their portion of the tax debt to have the lien removed. Contacting the Tax Commission to work out an agreement would be in order. To find out if someone else may have a lien, individuals with state tax lien questions concerning this can go to the district court clerk’s office in the county in which the person owns the property. Taxpayers also have the right to appeal the filing of a tax lien. Any requests for a hearing with the Office of Appeals must be made by the date shown on the notice of the tax lien. If you are facing a state tax lien, call a qualified Instant Tax Solutions tax attorney at 1-888-366-1147 for a free consultation.