In an effort to collect delinquent taxes, the government can create a legal claim of seizure on a non-compliant taxpayer’s assets. The types of assets can include bank accounts, automobiles, real estate, and any other property. It is usually a last resort measure to force an individual to pay back taxes, usually in instances where large amounts are owed.
Tax liens are a collection tool used by the IRS when the taxpayer does not heed repeated warnings and notices to pay the taxes owed. This often results in complete disruption of a taxpayer’s daily life. The easiest way to avoid tax liens is to file tax returns on time and pay off the full amount owed, but we understand mistakes happen. Also, it is possible that the tax lien amount is incorrect, and, if so, it can be appealed.
Tax liens are public record, and they may also be reported to credit agencies. Tax liens can cause problems when trying to sell property, but they can be released in some circumstances. The only way to fully eliminate a tax lien is to pay the tax debt in full. Examples of problems you could possibly face due an outstanding tax lien are:
- They are public record and appear on your credit report
- They prevent you from getting loans or financing
- You cannot sell or transfer your property under liens
- Your livelihood might be disrupted
Needless to say, tax liens are a very serious issue that should be immediately addressed. Tax liens can only be removed by settling the debt in full, which can be made easier by a few tax relief schemes such as:
- Offer in compromise
- Installment payment plans
- Bond guaranteeing payment of tax debt in full
As most other tax relief schemes, relief of tax liens is difficult to obtain. It is in your best interest to hire a certified tax professional with years of experience in the field. A certified and experienced professional will consider your unique situation and work diligently to protect your rights. While you have the option of representing yourself or preparing an appeal yourself, going against the IRS unequipped with any prior tax knowledge will prove to be nothing but difficult.
Our highly qualified tax experts can help you navigate the difficult process of a tax lien, so your life can return to normal. Contact us today to learn more about how Long Island Tax Resolution Services can help you.