If you have failed in paying your taxes on time and ignored the IRS’s notice and demand for payment, a notice of IRS tax lien will be issued against you soon. Regardless of the reasons for the delay, the IRS exercises legal rights to collect overdue taxes. Whether you are living in Dallas, Texas or anywhere else, you can always seek assistance from a reputable tax lien attorney. There are some legitimate ways to remove tax liens, which we have discussed in this blog. But first, let’s learn the basics of a tax lien.
What is an IRS Tax Lien?
A tax lien is a legal claim made by the IRS on the assets of the defaulter who has failed to pay the taxes on the due date. The tax lien specifies the IRS’s right ahead of other creditors to seize the assets of the defaulter and sell them to recover the defaulter’s due taxes. The lien can be issued against all of the defaulter’s assets including financial assets, real estate, and personal assets.
How does the IRS Issue Tax Liens?
The process of issuing a tax lien starts with issuing of a notice which is known as a notice and demand for payment to the defaulter. The notice or bill clearly mentions all the necessary details of the amount owed by the defaulter. If the taxpayer fails to pay up or enter into a payment arrangement, the IRS issues a public notice of federal tax lien against the defaulter’s properties, which continues even after applying for bankruptcy.
How to get Tax Lien Assistance?
Paying off the tax debt in full is the best way to get rid of a tax lien, however, there are ways to get tax lien assistance:
Discharge of property
A tax lien is applied to all properties from personal assets to stocks and financial assets. The discharge removes a lien from a specific property, which gives you the relief to sell the property off without any restraints from the IRS. The tax lien is not removed though.
Subordination
Subordination of tax lien is an arrangement where the IRS takes a back step and lets other creditors have priority over some assets, which may make it easier to get loans and mortgages. This too doesn't lead to the removal of tax lien by the IRS.
Withdrawal
In some circumstances (mentioned in IRS codes), the IRS agrees to remove the tax lien notice. The IRS lien withdrawal enables you to sell your house or seek financing without any problem, but the tax debt will remain until paid in full.
Conclusion
Taxes are unavoidable and mandatory and need to be paid to the IRS at any cost. It is important that you pay your taxes as per the due date to avoid interests and penalties, which further add to the tax debt and the strict collection actions like lien and levy. If, however, you have already received an IRS tax lien notice and are looking for tax lien assistance in Dallas, Texas, hire a skilled and professional tax lawyer who can help in removing or lessening the impact of the IRS tax lien. Experienced Dallas tax attorneys are knowledgeable about lien rules and will suggest the best ways to deal with IRS tax liens.
Sign in to leave a comment.