The IRS can come at you with a federal tax lien if you fail to pay your taxes in full. What is a federal tax lien? A lien gives the government claim to your personal property, real estate, and other assets – everything you’ve worked so hard for could be sacrificed if you don’t handle a lien notice correctly. You can even face the embarrassment and hassle of having your wages garnished or bank accounts seized.
Here are some of the long-term ways an IRS tax lien can affect your life:
- Your credit can be impacted
- Your ability to sell or refinance a home could be jeopardized
- You may face in-person visits with a revenue officer
A tax lien is a lot like a financial scarlet letter publicly announcing that you owe back taxes. It can follow you for years, damaging your efforts to obtain financing or make big financial decisions. This is why it is important to act swiftly with the help of a tax professional if you are dealing with a lien or the threat of a lien.
What Can Be Done About an IRS Lien?
The IRS will typically only release your lien when your tax debt has been fully satisfied. However, there are some special circumstances that could cause the IRS to release a lien without full payment. The list of reasons includes if a lien was filed too soon, if a lien was filed outside of accordance with IRS regulations, or if it is determined that canceling a lien is in the best interest of both the IRS and the taxpayer.
You should know that the IRS is often extremely reluctant to release or modify a typical tax lien. However, we have a team ready to investigate whether the IRS has truly met all legal requirements when filing your lien. We’ll comb through the details to discover any potential lapses that could make you immediately eligible for an appeal.
Here’s an overview of some of the circumstances that could invalidate your lien:
- The tax debt owed was paid before the lien was filed
- The lien was filed while you were in bankruptcy
- Some type of procedural error was made during the assessment
- The statute of limitations on the debt had expired before the lien was filed
- You were not given an opportunity to dispute a liability
Each situation involving IRS tax lien help is extremely delicate. You need a team on your side that will investigate every detail of your situation and create a solution that helps you walk away as unscathed as possible. The specifics of your case may put you in the right position to apply for something like an Offer in Compromise (OIC) deal or payment plan. Let us see what we can do to eliminate payments and penalties whenever possible.
Do You Need Help With an IRS Lien?
If you’re facing a federal tax liability that you currently cannot pay in full, Tax Group Center wants to help! We strongly recommend working with a tax lien help center to avoid allowing a lien to wreck your finances for years to come. Our team of licensed tax professionals, CPAs, and lawyers can comb through your case to help you find the best route forward. There is even a chance that we’ll be able to help you keep your federal lien off of the public records. Call the Tax Group Center today to get assistance with every step of the appeals process.