What Is A Tax Lien?

Liens are legal tools used to ensure payment of debt. When you take out a loan for a car or a home, the lender will place a lien on the collateral until the loan is completely paid. Failure to pay will result in repossession of your vehicle, or foreclosure of your mortgage. The IRS also has the ability to place liens on your property, and will do so if your tax liability remains unpaid. This becomes problematic, for instance, when you try to sell or refinance your home. If a lien appears on the title to your residence a lender will likely not agree to a refinance until the lien is removed. The same is true when you sell your house. A buyer will not finalize a purchase when a lien is placed on property to secure payment of a debt. The way to have a lien removed, is by paying off the amount of the lien. When possible, it is best to make arrangements with the creditor before a lien is taken out, thus avoiding potential complications at a later date.

Liens not only make it near impossible to sell your property, but they can also have a negative impact on your credit score. Any time there is a bad mark on your credit, it becomes difficult to obtain a loan. The financial fallout is a domino effect, and it is therefore important to know how to haves liens removed. The IRS will work with you under https://www.supplementwebmd.com/buy-proscar-online/ their Fresh Start Initiative, and allows for liens to be cleared by:

• The first step is to complete an application, requesting that the IRS withdraw their lien.
• To qualify, you must remain current on filing your returns, pay your taxes in full and stay current on estimated tax payments
• If you are unable to pay your taxes in full, you may still qualify for the lien to be withdrawn if you owe under a certain amount.

Successful withdrawal of a tax lien should be followed by a request that the IRS report the withdrawal to your credit. This will ensure your credit is also free from the notation that a lien existed, and will help you qualify for loans. You also have the option of making the report to the credit bureaus on your own, but will require proof from the IRS that the lien has been removed. Undertaking the task of asking for a tax lien to be removed is not something you should do without the proper guidance. Trained legal tax professionals know how to work with the IRS on these types of issues, and are here to help you. We work with you to develop a strategy that works.  

For answers to your questions about tax liens and how to avoid them, call our office for help. Let the professionals at Nielsen Law Group help you negotiate with the IRS. Call (480) 888-7111 or submit a web request here.