Tax Lien

What is a Tax Lien?

A tax lien is both a notification of your neglect or failure to pay your tax debt in full and a legal claim of the government's interest in your assets, which could be levied (seized) to pay off a tax debt. A federal tax lien will be issued after the IRS:

Assesses your tax liability

Sends you a bill that explains how much you owe (Notice and Demand for Payment); and

You neglect or refuse to fully pay the debt in time.

The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property. If you have received a tax lien, you need tax resolution as soon as possible.

How a Lien Affects You

A federal tax lien can affect one or more the following financial aspects of your life:

Assets

Credit

Business

Bankruptcy

The IRS attaches a lien to these financial aspects of your life to indicate their intent to claim a tax debt. If you have a tax lien filed to you or your business, you are at risk of losing property/vehicles/or other assets, and you may even jeopardize your business assets including accounts receivable.

What Happens if I Don't Resolve my Lien?

Failure to resolve a lien can result in a levy or seizure of your property and/or assets.

It will also expose you to penalties, fees, and interest, which can be very costly.

You may also continue to receive solicitations from creditors and resolution firms, and even have difficulty applying for credit on a home, vehicle, or bank account.

You should not ignore a tax lien - pursue tax resolution as soon as possible.

How to Get Rid of a Lien

Paying your tax debt in full is the best way to get rid of a federal tax lien. The IRS releases your lien within 30 days after you have paid your tax debt, which will prevent a Levy or Seizure of your property and/or assets.

What if I Can't Afford to Pay my Tax Debt in Full?

USTR recommends that businesses and individuals unable to pay their tax debt in full consult a qualified tax professional. Many tax professionals provide a free consultation, which can inform you of your rights and options. In some cases, you can save money by setting up an affordable payment plan.

What if I Want to Dispute my Tax Lien?

USTR recommends that businesses and individuals who wish to dispute their tax lien consult a qualified tax professional. Tax professionals can represent you on your behalf to the IRS, which means you would have a tax expert protecting your rights. In some cases, having an expert work your tax resolution case can save you thousands of dollars that you would have missed had you resolved your case on your own.

How do I Know if I Should Contact a Tax Professional?

USTR believes that contacting a tax resolution professional is common sense. When you have a medical problem, you contact a doctor. When you have a car problem, you contact a mechanic. When you have a tax problem, you should contact a tax professional. Many tax professionals provide a FREE consultation and USTR can connect you with some of the best tax professionals in the country. Click Here to Find a Pro

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