IRS Tax Lien
If you owe the Internal Revenue Service (IRS) back taxes, it’s possible that it could place a tax lien on your property to collect on the debt. A tax lien is a legal claim against your property that the IRS can use to collect the taxes owed to them. This lien can affect your credit rating and make it difficult to obtain financing or sell your property. However, there is hope if you’re facing this situation. A tax lawyer can help you navigate the complex process of dealing with an IRS tax lien.
What can the IRS place a tax lien on?
The IRS can place a tax lien on all your property, including real estate, personal property, and financial assets. Some examples include the following:
- Personal property, such as vehicles, boats, and other valuable assets;
- Financial assets, including bank accounts, investment accounts, and retirement accounts;
- Accounts receivable and other business assets;
- Intellectual property, such as patents, copyrights, and trademarks
The lien essentially means that the IRS has the right to take your property if you don’t pay your taxes.
Why does the IRS place a lien on a property instead of garnishing wages?
The IRS may choose to place a lien on a taxpayer’s property instead of garnishing their wages for several reasons.
First, the IRS may not be able to garnish wages if the taxpayer is self-employed, does not have a steady income stream, or if the taxpayer’s wages are already being garnished by another creditor. In these cases, a tax lien may be the most effective way for the IRS to secure payment of the tax debt.
Second, a tax lien can be a more powerful tool for the IRS than wage garnishment. A tax lien gives the IRS a legal claim to the taxpayer’s property, which can make it difficult for the taxpayer to sell or refinance the property without first paying off the tax debt. This can give the IRS more leverage in collecting the debt.
Finally, placing a lien on a taxpayer’s property can be less intrusive than wage garnishment, which can significantly reduce a taxpayer’s income. A lien does not directly affect a taxpayer’s income, but it does affect their ability to sell or borrow against the property.
Will the IRS notify me if they’re placing a tax lien on my property?
It’s worth noting that in some cases, the IRS may file a lien without first sending a notice if they determine that collection efforts are in jeopardy. However, in most cases, you should receive a notice before a lien is filed.
How can a Tax Lawyer Help?
A tax lawyer can help you in several ways when it comes to dealing with an IRS tax lien. Here are a few examples:
- Negotiate with the IRS
A tax lawyer can help you negotiate with the IRS to come up with a payment plan that works for you. This can include an installment agreement, an offer in compromise, or other options. A tax lawyer can also help you negotiate the release of the tax lien.
- File an Appeal
If you believe that the tax lien was unjustly placed on your property, a tax lawyer can help you file an appeal. This can be a complex process, but a tax lawyer can guide you through it.
- Provide Legal Advice
A tax lawyer can provide legal advice on how to protect your assets from the IRS. They can also advise you on how to avoid future tax problems.
- Represent You in Court
If the IRS takes legal action against you, such as a lawsuit, a tax lawyer can represent you in court. They can help defend you against the IRS and work to protect your assets.
An IRS tax lien can be a daunting and complex problem. However, a tax lawyer can provide valuable assistance in navigating the process and finding a solution. Whether you need help negotiating with the IRS, filing an appeal, or representing you in court, a tax lawyer can provide the legal expertise you need to protect your assets and resolve your tax problems. Don’t wait until it’s too late. Complete our free consultation form to speak with a tax lawyer about your take issues.