The IRS can get pretty nasty if you avoid paying your tax debt. Of course, they cannot just one day place a lien on your property and/or assets, but if you ignore their Notices, they might move to seizure of your property/assets. First, let us understand what an IRS tax lien is.
An IRS tax lien is the seizure of a taxpayer’s property to secure their paying of the tax debt. By placing a tax lien, the IRS gets the legal right to seize your property and any assets they find fit, without a court order, to ensure you pay your tax debt. To stop the IRS from getting a hold of your property, you will need to file for an IRS debt payment plan. There are different plans depending on the different financial situations of taxpayers that you can use.
When you receive an IRS notice informing you about your tax debt and how you can pay it back, you need to get help fast. The IRS is watching you, and if you do not act on it, they will take whatever they can.
The next step after a tax lien is a tax levy, which is the selling of the seized property and/or assets to fulfill the tax debt. Even if you do not have the money to pay the tax debt and have no property and limited assets, you can apply for the tax debt reduction plan “Offer in Compromise,” or the postponement of tax debt collection using “Currently Not Collectible.” Filing for the wrong IRS debt payment plan is penalized, so take care of that.
Instead of avoiding or ignoring IRS Notices, it would be best to resolve the debt once and for all. Why would you want to live under the threat of the IRS? Postponement is nothing, but that. Tax liens can be stopped, but because getting your property seized is not pleasant, get rid of the tax debt and live free.