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What Should I Do If I Have A Tax Lien

What Should I Do If I Have A Tax Lien

A tax lien is a claim against your property made by a federal or state government if you fail to pay your taxes. There are a number of downsides to having a tax lien - it lowers your credit score, it reduces your ability to sell the property, and it may prevent you from refinancing your home. Tax liens also remain following bankruptcy, so they are very difficult to remove without actually paying them. If you amass enough tax liens on your property, it may be forcibly and legally repossessed by the U.S. government as a tax levy.

If you believe that you have been given a tax lien in error, contact a tax lawyer today to see if you can file an appeal with the IRS. If you'd like to pursue other options of reducing your lien's impact on your finances, credit and real estate, a tax attorney can help you gather documents and fill out necessary forms.

Your Options If You Have A Tax Lien

Any sort of official communication from the Internal Revenue Service is a scary thing, especially when it involves unpaid taxes and claims on your property. However, if you know the rules, know your options and have the help of a qualified tax lawyer, you do not have to worry. These are your options in the event of a lien:

  • Pay Off the Tax Debt - This is the simplest way to get rid of your lien, and if you are able to do it, your lawyer will suggest that you do. Once you've paid your debt, the lien will go away and you will be able to sell and refinance your property. A mark will still remain on your credit, however.
  • Sell the Property - If the tax debt is for less money than the property is worth, you may be able to negotiate the home's sale with the IRS and an interested buyer. You will receive the money from the sale minus the tax lien, and the buyer will receive the house free of lien.
  • Appeal the Lien - If you can get in touch with a qualified tax attorney, you may be able to fight the lien in court. While legal appeals for tax liens tend to be difficult to accomplish, with the right lawyer you may be able to get the lien lessened or overturned.

Contact a tax lawyer today if you've been given a tax lien! Don't let the situation fester. Deal with it as soon as possible!