Definition: A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.
The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien is usually applied after you the IRS sends you a bill that explains how much you owe and you neglect or refuse to fully pay the debt in time. The IRS will also file a public document, a Notice of Federal Tax Lien to alert your creditors.
How a lien affects you: A lien attaches to all your assets and to future assets acquired during the duration of the lien. Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit. A lien also attaches to all business property and all rights of business property, including accounts receivable. If you file bankruptcy, your tax debt, and lien may continue after the bankruptcy.
The other affects include stress, worry, lack of sleep and the impact on personal relationships such as spouses or significant others. You will likely experience collection calls and notices as well because the IRS has contracted with outside agencies to handle collections.
How to remove a lien: The easiest way to get rid of a federal tax lien is to pay your debt in full. The IRS will generally release your lien within 30 days after your tax debt is paid. A trained tax resolution specialist may be able to assist you in getting the lien removed without paying off the total debt.
Having a tax lien hanging over your head is AWFUL! It will cause stress in your life, embarrassment if friends, relatives or colleagues find out and will cause sleepless nights. This will negatively impact your health, work/home life and your everyday wellbeing. DON’T FALL VICTIM TO THE IRS! IT IS ONE OF THE MOST POWERFUL AGENCIES IN THE WORLD. Call Tax Resolution Allies today at 207-221-6603 for a free consultation or visit our website at www.taxresolutionallies.com. We Fight So You Don’t Have To!!