If you have an outstanding tax debt and have continually ignored payment to the Internal Revenue Service, the IRS can easily attach a tax lien against your property. Even though you may owe only penalties and interest from a previous, unresolved tax debt, the use of a tax lien can be employed.
The IRS will send you a notice to inform you of your tax debt. You must respond immediately before the deadline stated in the notice (usually 10 days), with payment or a request for settlement assistance. If there is no communication from you, the next IRS notice will be a demand to pay your back taxes immediately. You will be given 90 days to pay all back taxes and accrued penalties and interest. At the end of 90 days, if there is no response from you, the IRS will notify you of their intent to place a tax lien on your property.
Every year the Internal Revenue Service generates thousands of federal lien notices. You are not alone in this difficulty. Prior to sending the tax lien notice, the IRS does not check to see if you have any assets or property. Once you have been notified and the deadline is passed, the IRS will move to seize current assets and properties and any you may acquire in the future as payment.
A federal lien can bring financial ruin. You are at the risk if losing your money, your house and even your business if you fail to settle your tax debt. Take action to avoid a tax lien by responding to any notices received from the IRS. You may contact the IRS directly by phone, or better yet let your tax expert negotiate with the IRS on your behalf. Do not get to the point where the IRS is forced to issue a federal lien.
You tax specialist is much better equipped to delay the tax lien process. They can work out a tax relief program for you with the IRS. If you wish to appeal your tax problem in court, tax resolution experts can work with the IRS to provide you the time to resolve any errors or misunderstanding. It is important to be in communication with the IRS to avoid having the federal lien initiated.
Tax liens are always attached in your name if you failed to resolve your tax debt. Your goal is to forgo the federal lien and enter a settlement plan. The only other way to stop the tax lien is to file bankruptcy which has a long-term negative effect on your credit.