When I was a Revenue Officer my sinister weapon of choice was The Tax Lien
. I used it and attacked with deadly accuracy. But now that I'm on your side, I'll let you in on some Tax Lien Secrets the IRS doesn't want you to know.
1) Liens Can Strike At Any Time
Tax Liens are a knee jerk reaction with the IRS. The trouble starts with the IRS sends out Notice of your Tax Lien to your credit bureau. Then your Tax Lien is public record.
Solution: Work with a professional to take care of your tax debt as quickly as possible and you may avoid tax lien problems altogether.
2) Liens Can Be Lifted
If you can prove your Tax Lien will prevent you from earning money to repay your tax debt or prevent you from obtaining a loan to repay your tax debt, the Tax Lien may be temporarily lifted.
Solution: The IRS will require letters are detailed records which prove why you need the Tax Lien lifted. You can do it, but it will be difficult to lift your Tax Lien.
3) Liens Might Be Here to Stay
If you make a misstep your Tax Lien may stick around longer than you anticipated.
Solution: After your Tax Debt is repaid in full, double check with your credit bureau and ask what steps need to be taken to remove the Tax Lien for good.
When a Tax Lien strikes, don't panic. It's painful, but it won't automatically ruin your business, your finances, or your life. Don't give it the chance, get help or get busy ASAP and stop the Tax Lien from doing further harm.