Repair Your Credit and Avoid a Tax Lien
Tax liens can really make your life miserable! When you fail to pay your taxes, the IRS and/or State files a lien against all of your assets. A tax lien is imposed by law upon your property to secure the payment of taxes. The IRS may file it because of delinquent taxes owed on property, or failure to pay taxes. This gives them the legal right to collect taxes from the sale of your assets. This includes literally everything you own.
The IRS can essentially seize all your property until you pay your debt. They may file the lien against you, your spouse, or your company, depending on how the tax liability was incurred. Everything you own is in jeopardy of becoming property of the government. But you can still save your assets! It does not necessarily mean losing your property immediately. A lien secures the government’s interest in your property; a levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize, and sell any type of real or personal property that you own or have an interest in. But if you are at the lien stage, you may still have time to resolve the issue.
Liens filed against you show up on your credit report and often prevent you from opening a checking account or borrowing against any assets, like your home. If a lender is willing to approve a loan for you, the interest rate will be higher when a lien appears on your credit report. Think about paying 18-22% interest on a car that is already too expensive. Buying or selling real estate is likely out of reach as well.
Liens can be removed once you have assured the government that you are compliant. Meeting certain criteria could even erase federal liens from your credit report. This could mean an increase in your credit score of up to 100 points. We can help you manage debt to avoid a tax lien, or quickly resolve the issue if you already have one.