Dealing with the IRS can be a stressful experience, and one of the worst things that could happen is facing an IRS tax lien. A tax lien is a legal claim against your property or assets when you owe money to the government. In this article, we’ll explain what an IRS tax lien is, how it affects you, and how a tax relief professional can help you avoid it.
Introduction to IRS Tax Liens
An IRS tax lien is a legal claim the government makes against your property when you don’t pay your taxes. The lien protects the government’s interest in your property and gives it the legal right to seize and sell the property to satisfy the debt.
A tax lien is different from a levy. A levy actually seizes your property, while a lien just protects the government’s interest in your property.
If you have a tax lien, it will show up on your credit report and make it hard to get loans or buy property. It can also lead to wage garnishment or seizure of your bank account or other assets.
If you’re facing a tax lien, you should talk to a tax relief professional. They can help you negotiate when does irs file tax lien to avoid having your property seized.
What Causes a Tax Lien?
There are a few different things that can cause the IRS to place a tax lien on your property. The most common reason is failing to pay your taxes. If you don’t pay your taxes, the IRS will eventually come after you. They may try to work with you to set up a payment plan, but if you can’t or don’t make payments, they will eventually file a lien. Other reasons for an IRS tax lien can include not filing your taxes, or owing money from a previous year’s taxes. If you have any unpaid tax bills, the IRS can also file a lien.
If the IRS files a lien, it means they have a legal claim to your property. This includes your house, car, bank accounts, and other assets. The lien gives them the right to seize your property and sell it in order to pay off your debt. A tax lien can also damage your credit score and make it difficult to get loans or buy property in the future.
If you think you might have a tax lien on your property, it’s important to speak with a tax relief professional as soon as possible. They can help you understand what options are available to you and how to best resolve the issue.