Liens can be a confusing and overwhelming aspect of tax law. If you owe back taxes or have delinquent tax debt, the IRS may place a lien on your property, which can have serious consequences. In this blog post, we’ll provide a comprehensive guide to help you understand how liens work and what you can do to protect your assets.
What is a Lien?
A lien is a legal claim against your property that ensures payment of a debt. When the IRS places a lien on your property, it means that they have a legal right to your assets, including your home, car, and bank accounts. The lien will remain in place until the debt is paid in full. This means that if you sell your property, the IRS will be paid first before you receive any proceeds.
How Does a Lien Affect You?
The most significant impact of a lien is that it can damage your credit score. A lien will appear on your credit report, and it will remain there for seven years after it is paid in full. This can make it difficult to obtain credit or buy a home. Additionally, a lien can prevent you from selling your property or taking out a loan until the debt is paid.
What Can You Do to Remove a Lien?
There are several options available to taxpayers who want to remove a lien. The first step is to pay off the debt in full. Once the debt is paid, the IRS will release the lien. If you cannot afford to pay the debt in full, you may be able to negotiate a payment plan or settle the debt for less than the full amount owed. It’s important to speak with a tax professional to determine the best course of action for your specific situation.
Protecting Your Assets
The best way to protect your assets from a lien is to stay current on your tax payments. If you owe back taxes, it’s important to address the issue as soon as possible. The longer you wait, the more interest and penalties you will accrue, and the more likely the IRS is to place a lien on your property. Additionally, it’s important to keep accurate records of all your tax payments and filings. This will help you dispute any erroneous liens that may be placed on your property.
Contact Our Oklahoma City Lien Lawyer
Liens can be a complicated and intimidating aspect of tax law. However, with the right knowledge and guidance, you can protect your assets and avoid the negative consequences of a lien. If you need help with a lien or any other tax issue, contact The Carver Law Office, PLLC. Our experienced tax attorneys can provide the guidance you need to resolve your tax problems and protect your assets.
Contact us to get started on your case today.