Did you receive a notice stating that you have a tax lien and now wondering what that means? To receive help with tax liens, you will first need to understand exactly what they are.
A federal tax lien occurs when you do not pay a tax debt, and the government makes a legal claim against your property. Please note that a lien is different from a levy. A levy is the actual seizure of your property in which the government can actually take and sell your property in order to pay off your tax debt.
In essence, a tax lien is attached to your property. Liens are often publicly reported to keep you from refinancing or selling any assets which the lien pertains to, and in addition, will prevent you from borrowing money. The lien will, in some cases, show up as a line on your credit report to ensure you will be unable to borrow any money.
The best way to avoid receiving a tax lien is to ensure that you pay your taxes in full and on time. If you’re unable to, you may be able to make arrangements for a payment plan with the IRS to spread out the period of time for repayment of what you owe. If you do receive a lien, the best way to get rid of it is to pay back your taxes owed in full and the lien will be released within 30 days of the repayment.
Liens can be tricky and complicated. There are quite a few ways to release a lien and to have it withdrawn from the public record. Oftentimes, this can be a complex and lengthy process. It may be in your best interest to contact a tax professional to get help with your tax liens rather than trying to resolve the process on your own. If you need a qualified tax professional with years of experience in handling liens, contact the experts at Nationwide Tax Solutions. They will be able to guide you through the process in order to resolve the matter as efficiently as possible.