Remove a Tax Lien
What Is An IRS or State Tax Lien?
An IRS or State Tax Lien occurs when the state or federal government claims a right to your property. It is typically sanctioned when an individual taxpayer or business fails to pay taxes that are owed. When a tax lien is placed, it does not necessarily mean that the government will seize your property on the spot, however they will now have a level of control over. In a worse case scenario the government will seize your property and auction it off in order to recoup the money that is owed to them. This may include real estate, vehicles, jewelry, and anything else you may have of value.
Something that you need to keep in mind is that the government does not care if you are living on the street without an automobile to drive you back and forth to work; they simply want to be paid the debt that is owed. Obviously it is critical that the tax lien is removed as soon as possible before it becomes a worst-case scenario. A tax lien guarantees that the government will have the first right to your property over other creditors. The tax lien will stay in place until the tax liability, otherwise know as debt, has either been paid off, the statue of limitations on said debt expires, or the taxpayer meets the new IRS Fresh Start Initiative requirements.
How an IRS or State Tax Lien Impacts Your Daily Life
When a tax lien is filed, the information will appear on your credit report, making it extremely difficult for you as an individual or business, to apply for loans or lines of credit with any and all lending institutions. Not only will the tax lien information appear on your credit report, it will also significantly lower your credit score.
If you find yourself in this position, do not plan on applying for a mortgage, automobile loan, or even credit cards. Lenders are certain to turn you down. In addition, the unfortunate result of a tax lien will negatively affect your ability to qualify for renting an apartment or commercial space due to the fact that most landlords check credit in this day and age.
There is a logical reason that Lenders view potential borrowers as too high of a risk if a tax lien appears on their credit report. Since the IRS or state department of revenue can confiscate the asset before any other party, there is little to zero chance that the lender will be able to recover the asset if the borrower fails to make timely monthly payments. Life is hard enough. You most definitely do not need the added stress and pressure of having a lack of ability to borrow money when you need to.
We Can Help Obtain A Release Of Tax Lien
Releasing the tax lien will ensure that your assets and property stays in your possession without the threat of being seized by either the IRS or State. It also means that the county records are updated to show that the lien has been properly released.
The fact that the tax lien occurred will appear on your credit report for up to ten years, however your credit will have an extremely positive impact once it is released. Lenders will realize that the government no longer has a hold over your assets, and will be willing to take the risk on you. In addition your credit scores will increase which is another positive factor on being able to borrow money.
There are many ways we can help. Our team consists of experienced tax experts that completely understand how the IRS and State tax authorities operate. We will work directly with you to solve your tax issues and remove the tax lien. Please contact Alliance Tax Advocate today to review all of your options.