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If the IRS files liens on your property....
What To Do If The IRS Files Liens On Your Property
Finding out that the IRS has filed a lien against your property can be daunting. A lien is a legal claim against your assets, and it's a way tool for the government to ensure it gets paid the amount that they say you owe.
If that unfortunate day comes, Don't Panic! Here’s a step-by-step guide on how to navigate this situation.
1. Understand the Lien
First, it’s crucial to know what a lien entails. The IRS files a Notice of Federal Tax Lien when you fail to pay your tax debt. This public record can affect your credit and make it challenging to sell your property. However, keep in mind that liens just don't come about in a vacuum. This is usually a month's long process that culminates in liens being put on your property. As such, make sure you do not ignore correspondence from the IRS.
2. Review Your Tax Bill
Along with what we mentioned above, make sure you aren't ignoring correspondence from the IRS. In fact, carefully examine the details of your notices and tax bills that you receive; don't just put them in a pile to read later (or throw them in the trash). In most situations, there are specific actions you can take to resolve the situation before it gets to the point of a lien even becoming necessary.
Also of great importance is to ensure that the amount the IRS says you owe is actually accurate. Mistakes can happen, and the IRS makes them all the time. At any one time, we have at least a handful of clients where the IRS is completely wrong!
3. Contact the IRS!
Again, DO NOT WAIT!
Reach out to the IRS as soon as you receive any type of correspondence or notice from them. Liens are usually a last resort and there are often many options available to prevent the situation from escalating. Additionally, keeping the lines of communication is always an important thing to do.
4. Explore Payment Options
If you determine that you do actually owe the IRS, pay your liability as soon as possible; if you're able.
The IRS accepts various payment methods, including credit cards, checks, and direct transfers. You can even pay online: https://www.irs.gov/payments
If you can't pay the full amount, consider such actions as:
5. Consider Filing for Withdrawal or Subordination
Once you pay your tax liability, the IRS "should" release all liens within 30 days. However, you may need to request the IRS to withdraw the lien. You can actually request the IRS to withdraw the lien at any time (although you generally need to be close to paying off your debt to have them consider this).
Alternatively, if you’re trying to sell your property, you can request subordination, which allows you to obtain a mortgage or other financing despite the lien.
6. Stay Informed About Your Rights
Perhaps most importantly, you have rights when dealing with tax liens. Also know you have rights with all things IRS-related.
The IRS must notify you about the lien, and you can generally appeal if you disagree. Educating yourself about your rights can help you navigate the situation more effectively.
Conclusion
A tax lien can be intimidating, but it doesn’t have to be the end of the world. By staying proactive and informed, you can take steps to resolve the issue and protect your property. Remember, the IRS is often willing to work with you—so don’t hesitate to reach out to your premier tax resolution company - Liberty Tax Defenders!
817.995.5008 or info@libertytaxdefenders.com
To your success!
P.S. Make sure you get your FREE copy of our SPECIAL REPORT: "The 7 Secrets The IRS Does NOT Want You To Know!" (simply click on the link in the previous sentence, scroll down to the second section of our home page, and download your copy today!)
Or, email us at: info@libertytaxdefenders.com for your FREE copy.
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