Tax Liens are devastating, so why would the IRS continue to impose them? The answer is simple; the IRS will continue to impose Tax Liens because they work. As long as Liens are being filed, taxpayers will be strained into paying their Tax Debt!
Once a Lien is filed your credit rating will be harmed and it will be nearly impossible to buy a house, buy a car, get a new credit card, or even sign a lease. Consequently, it is very important to work to resolve your Tax Debt before a Lien is filed against you.
Tax Liens Defined
Basically, Tax Liens give the IRS legal claim to your property as security or payment for your Tax Debt. When the IRS files notice of the Tax Lien, creditors are publicly notified that the IRS has a legal claim against your property. This includes:
• Property acquired after the Tax Lien is filed
• Accounts receivable
• House, Car, or Real Estate
Releasing a Tax Lien
There are several options for releasing a Tax Lien. Unless you are paying your Tax Debt in full, it will be hard to remove the Tax Lien without professional help.
Options for Releasing a Tax Lien:
• Payment in full: The Lien will be removed when the Tax Debt is paid in full.
• Withdrawing Liens: You can file to have your Lien withdrawn if Notice was filed too soon, you enter an Installment Agreement with the IRS, or if withdrawing the Lien will speed up collection of the Tax Debt.
It’s a good idea to consult a professional to see which option would be best suited to your case with the IRS.
Statute of Limitations, the Ten Year Rule
Usually, Tax Liens are automatically released ten years after the Tax Debt is accessed. If you feel that the IRS has negligently failed to release a Lien and that the Statuary period has passed, you should consider working with an attorney to have the Lien removed. You can even sue the Federal Government for damages incurred by the Lien.