What you should know about tax liens
  • April 24, 2020
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The government’s claim against the property of a taxpayer when they fail to meet their tax obligations is known as a Federal tax lien. The lien protects the government’s interest in the property, including personal assets, real estate, and financial assets. It gets activated when the IRS assesses its books and discovers that you have defaulted on your tax debt. The next step is issuing a “Notice of Federal Tax Lien” to apprise creditors that the government has acquired a legal right over your property. You don’t need to panic if you find yourself in such a situation as a tax lien attorney can help you resolve the issue. Continuing on the topic, in this blog post, we present four ways in which a tax lien can affect you. Take a look.

1. Creditworthiness

Your ability to obtain credit ceases once a public Notice of Federal Tax Lien is filed against you by the IRS. Despite not appearing on your credit report, the filing of a public notice stating the government’s right on your property can still reduce your creditworthiness and limit your chances of getting a loan.

Related Blog: How to Approach the IRS Office Of Appeals

2. Refinancing or Home Sale

A tax lien covers all your assets and will surface during any title searches. If you are trying to refinance or sell your house in which you have equity, you will need to use some of the money to pay your taxes in order to close the deal. A tax lien can even claim your business property and the rights related to it which includes authority over the accounts receivable.

3. Time Management

The IRS directs most cases of overdue tax payments into its ACS (automated collection system), which can mean spending long hours on hold when you get in touch with the call center. Sometimes, the IRS can assign cases to a revenue officer, which calls for an investment of time by way of personal visits. If you are facing any issue related to a tax lien, it is advisable to consult an IRS tax attorney for expert help charting the best way forward.

Related Blog: 4 IRS Tax Problems And Their Resolutions

4. Tax Levy

The next step after the IRS files a federal tax lien is to issue a Notice of Intent to Levy. If you don’t pay your taxes even after getting a formal notice of a tax lien, the IRS issues a tax levy that gives it the authority to seize your property to offset your tax liability. It is generally done under statutory authority without having to go to court.

Wrap Up

For a better understanding of how an IRS tax lien affects you and expert help to get its withdrawal, you can seek guidance from our tax lien attorneys. The Law Offices of Nick Nemeth, a team of professional IRS lawyers in Dallas with a history of successfully representing and advising taxpayers. If you need IRS tax lien assistance in Dallas or expert help regarding other IRS tax issues, feel free to call us at (972) 426-2553. You can also fill out our contact form and we will take it from there.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
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I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
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