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.