IRS Debt Terms

Tax Liens

This is a legal claim to your property as security or collateral for payment of tax debt. Basically, the IRS is telling you your property is now eligible to be seized and is being used as a security for your debt.

If the IRS files a Notice of Federal Tax Lien, all your creditors are publicly notified.
Liens may occur when: The IRS assesses your outstanding tax liability.
The IRS sends you a Notice and Demand for Payment in the amount owed.
You do not pay the entire debt within 10 days after you are notified.

If you have paid your taxes due or made arrangements for payments within the 10 day time frame, then the  IRS will send you a release of the Notice of Federal Tax Lien within 30 days.

Levy: A levy is a legal seizure of your property to settle a tax debt. The IRS may seize and sell any type of real or personal property or investment that you own or have interest in, This will happen if you did not respond to a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. These documents are served in person to your place of business, or to your last known address by certified mail.
 

Removing Liens and Levies
 

It’s important to remove a Tax Lien as soon as possible.
Having an IRS Tax Lien issued against you can have devastating results. Your car, assets, credit, and even your home are no longer yours alone.

Tax Liens don't transfer your property to the IRS, but they do hurt your credit. Don't wind up with a ruined credit report and no assets to your name. Learn how to have an IRS Tax Lien removed.

30 Day Deadline:

The IRS must notify you that they've filed a Lien within five days after it's filed. You then have 30 Days from the day after the 5-day period expires to file an Administrative Appeal. You have to act fast and effectively if you expect this method to have success.

Paying in Full:

The IRS Tax Lien is always in effect, even if you’re paying your IRS Tax Debt in small monthly payments with an Installment Agreement, the IRS Tax Lien will remain in place.

To remove a lien it’s always a best to pay your IRS Tax Debt in full. Take out a loan or borrow money from a friend if you can. If that’s not a possibility, consider trying to settle your IRS Tax Debt with an Offer in Compromise.

The Clock's Ticking: Maybe your credit is already shot? The longer you go without paying your IRS debt, the closer the IRS gets to turning a Lien into a Seizure. If you are not confident enough to take on the IRS on your own, enlist the help of a qualified professional.

What to Expect in the case of a lien:

Bad Credit: The most common lien is one that's placed on your credit. Not only does it make it nearly impossible to do anything involving credit (take out a loan, refinance your mortgage, buy a new car, etc.), but it can destroy your credit for a good share of your distant future. You could easily go from having a 750 credit score to a 500 from a Tax Lien.

Troubled Assets: The IRS can also place a Tax Lien on any of your assets such as your house or car. The longer you go without resolving your debt, the closer the IRS gets to turning a Lien into a seizure. When this happens, they seize the property entirely and sell it in order to pay the tax debt that you owe.

With a Tax Lien it's extremely important to get your entire Tax Debt paid off as soon as possible to reduce credit problems. Remember, sometimes an IRS Lien can remain in effect until the entire Tax Debt is paid in full.

TaxReturnRefunds.com US tax help, AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, H, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, New NH, New NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

All Rights Reserved