If you ignore a tax lien from the IRS, you may be penalized with a bank levy or wage garnishment. When an individual or a business owes money to the IRS from unpaid taxes, the IRS may place what is called a lien on your property. The government often does not afford you much time to pay back your taxes; in many cases, you could have only 10 days before the IRS puts a lien on your property. This can do major damage to your credit score. Contact a tax attorney to get this released as soon as possible, with as little damage as possible.

A lien is simply a legal claim to your asset, sort of like collateral, in order to secure payment for your tax issues. This form is filed with your county, showing that the IRS is claiming your property for purposes of unpaid taxes, and this is often the first step that the IRS takes in their account recovery process. A tax lien will show up on your credit report and reduce your ability to obtain credit, secure housing, or eve get a job, and should be taken seriously. This may happen after the IRS sends you a tax bill and you don’t pay it in the allotted time.

If you ignore a tax lien from the IRS, you may be penalized with a bank levy or wage garnishment. A levy is the more active next step, following a lien. If the IRS levies your property, this means that they legally (maybe not yet physically) take the asset in order to fulfill your unpaid tax. It may take some time for your tax issues to reach this point, but it’s important to know if you’re headed for a levy. There are several possible solutions for a tax lien, and your lawyer will be able to tell you which is best for your unique circumstances. You may be able to file any of these requests, depending on your situation:

Subordination Request – Requests IRS to shift the lien behind a certain creditor to help get financing that may benefit both you and the IRS.
Withdrawal Request – May be possible to remove the lien from your credit report, if keeping you from making an income.
Discharge Request – May be possible if you are attempting to transfer or sell your property.

A seizure is simply a more extreme form of a tax levy, and only generally happens when a taxpayer has ignored the IRS outright for some time. This involves the IRS physically confiscating your property and auctioning it off to resolve your tax issues. These assets are typically things like houses, vehicles, boats, and other valuable belongings. If you are afraid of losing your home or other property to the IRS, it’s critical that you reach out to an experienced tax lawyer right away. We may be able to help you avoid seizure, and will go the extra mile to examine the IRS protocols to ensure compliance with the law.

When you need help defending yourself against an IRS tax liens, levies, and/or property seizures, come to the Tax Solutions Attorneys and ask for your free consultation!

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