The federal tax lien is a legal claim to your property and is not limited to the property you had before the lien was filed. Not only will you have a lien on your property for you to worry about, but there will also be a Notice of Federal Tax Lien in the public records. This allows anyone performing a credit check, or anyone perusing the case search database, to see that you have a lien filed against you by the IRS. It also notifies your creditors that the IRS has a claim against all your property.
Since the lien may appear on your credit report, it can harm your credit rating and prevent you from getting a loan. Once a lien is filed, the IRS generally will not release the lien and withdraw the Notice until the tax (along with all penalties and interest) is paid in full. However, there is hope – under certain circumstances, the IRS makes exceptions and will withdraw the Notice of Federal Tax Lien if you enter into a direct debit payment agreement. If this Notice is withdrawn, your lien will still exist, but you will be the only one who is notified about it.
A lien can be intimidating, but it just secures an interest in your property. A levy actually takes the property to pay the tax debt. The IRS can levy your wages, bank accounts, Social Security benefits, and retirement income, as well as your physical property for the purpose of selling it to pay your tax debt. The IRS may levy your income and property without gaining prior approval from the courts.
Luckily, levies can be avoided and resolved through open communication and cooperation with the IRS, and we can handle this for you. If you have already been levied, we will work hard to have your levy released and enter you into an alternate method of collection – one that is not so unbelievably intrusive.
Don’t let your tax issues get any worse, contact one of our experienced tax professionals today to get the skilled assistance you need to move on.