Ruined Credit: Tax Lien

The IRS pursues a taxpayer in earnest by filing a Federal Tax Lien.  By filing the Lien, the IRS has given notice the government has a legal claim to everything you own.  Here’s how the process starts:  if you have not paid your taxes, the IRS sends a series of notices which grow more and more threatening.  The last one lets you know about the government’s intent to seize your property.  Then the IRS files a Notice of Federal Tax Lien in public records.  If you try to sell or borrow against your property, the IRS tax lien surfaces, and the IRS claims what it’s owed.  If you succeed in selling your house, the IRS has rights to be paid first, possibly leaving you with nothing from the sale.

Once the IRS has filed the tax lien, taxpayers find it difficult or impossible to obtain credit to make a large purchase or borrow money.  Federal Tax Liens appear on your credit record and will hamper your finances significantly.

Tax liens harm your finances for as long as the IRS can legally pursue you (typically for 10 years) or until you settle your liabilities.  If you ignore the tax lien, the IRS will move forward and unleash its Levy power to seize and sell your assets.

Never let tax problems fester.  Like an infection, they will worsen and harm your financial and personal life.  The attorneys at the Bankruptcy and Tax Law Center help resolve tax problems, remove Tax Liens, and give clients a fresh start.

Call 1-800-TAX(829)-6183 or complete our Contact Form to learn how to get out from under the IRS.