A tax lien is a claim made by the government on an individual’s personal or business assets when you neglect or fail to pay the tax debt. It can be brought against your asset by the Internal Revenue Service (IRS), the state, or the local authority. A tax lien does not give the government the right to seize your property, unlike in a tax levy. However, it does allow them to force you to sell or liquidate your assets to collect what you owe. A tax lien can negatively affect your credit if not properly handled. To help get you out of the problem, in this post we answer four frequently asked questions about tax lien help. Take a look.
1. What should I do to deal with a tax lien?
In a case where a tax lien is claimed against your asset(s), you can turn to The Office of Appeals, which is an independent entity inside the IRS. Your situation qualifies you to apply for two appeal procedures both of which involve a hearing. These procedures are Collection Appeal Program (CAP) and Collection Due Process (CDP) they both give the right to appeal the tax lien brought against you. You can represent yourself at the hearing or be represented by a tax attorney.
2. How to approach Federal Taxpayer Advocate service?
Nobody likes a tax lien or anything that has to do with the IRS because most of the time it can get messy. In an event that you are finding the terms of the tax lien difficult to deal with or if it’s causing you financial difficulties, you can reach out to the Federal Taxpayer Advocate Service. You can fill out a Form 911 which is a Request for assistance from the Taxpayer Advocate Service.
3. Can my state tax authority help with an IRS tax lien?
If you have a tax lien situation, you can contact your state revenue tax authority to find what options are available to you. The department of revenue in your state can help you come up with installment plans for managing your tax lien. Your state may also have an advocate service that can assist taxpayers with their tax lien issues. State departments of revenue each create their own rules, so contact the state directly.
4. Can I get the lien withdrawn from my assets?
No matter how callous the tax authorities may seem, they really don’t want to come after you to get the money you owe. You can file IRS Form 9465 which is an Installment Agreement Request. The IRS must allow you to make payments on your overdue taxes if you owe less than $50,000. They could remove the tax lien from your property (or asset) if you work with them to set a payment plan in place and pay the amount due.
If you have a tax lien it’s important to take action right away.. You can use any one of these ways to get tax lien assistance. It’s best to consult a tax attorney for advice on which of the above is best for your particular situation. A tax attorney can also help you wade through the complex tax laws and provide the most practical solution for your circumstances. If you are receive a tax lien, do not waste any time, speak with an IRS tax lawyer at the Law Offices of Nick Nemeth. In your free consultation you will learn exactly what we can do for you. Please call us at (972) 627-4580 or (888) 890-0523 (Toll Free).