Steps to Tax Debt Resolution. Call GSA Taxpayer Advocates today 855-472-8294

Federal Tax Liens

The general rule is that “if any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, additions to tax, or assessable penalty, together with costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to the taxpayer.”

According to this general principal, liens give IRS a legal claim to your property as security or payment for your tax debt. A Notice of Federal Tax Lien may be filed only after:

  1. IRS made an assessment of your tax liability;
  2. IRS sent you a Notice and Demand for Payment - a bill that tells you how much you owe in taxes; and
  3. You neglected or refused to fully pay the debt within 10 days after IRS notified you about it.

Once these requirements are met, a lien is created for the amount of your tax debt. By filing notice of this lien, your creditors are publicly notified that the IRS has a claim against all your property, including property you acquire after the lien is filed. This notice is used by courts to establish priority in certain situations, such as bankruptcy proceedings or sales of real estate. The lien attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivable, if you are a business).

Once a lien is filed, your credit rating may be harmed. You may not be able to get a loan to buy a house or a car, get a new credit card, or sign a lease. Therefore it is important that you work to resolve your tax liability as quickly as possible, before lien filing becomes necessary.

However, if your tax bill is unpaid, a Federal Tax Lien is probably on its way. Call us immediately at 1-855-GSA-TAXHELP (1-855-472-8294) for help.

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