Inadequate Financial Planning and Other Reasons for Tax Liens

Paying one's taxes is a legal obligation of all legal citizens. Taxes go towards paying for all of the public structures, institutions and services that we've all come to know and expect. Each working adult is required to complete the federal and state tax forms that apply to their life situation. There are short forms for the simpler and more straightforward filing and long forms when things get a little more involved with the varied financial sources and claims. Some professionals, like independent contractors in everything from construction to copywriting, are suggested to file quarterly; meanwhile others can file once yearly in the spring with their federal and state taxes.

We all know by now that federal taxes are due mid April and state taxes are due mid May. But each year the internet is always riddled with questions about when taxes are due. This leads one to believe that many people not only don't file for extensions so that they can collect their documents and pay their taxes on time each year; they don't file or include payment at all. No one is nervous about receiving money back from the government; it is the fear of owing more of their expendable cash than they have available right now. After a payment plan is not reached or the notice of required payment is ignored, property can be seized to pay the back taxes. Across the country in a variety of tax avoidance situations, it is all called tax liens.

Tax liens is placed on real estate or personal items after one has been deemed unable to or refused to pay income, property such as one's estate or a variety of taxes such as gifts or winnings from a lottery. According to Internal Revenue Codes 6321 and 6322 the federal government is well within their rights to place an immediate lien on your property once they've ordered payment when the initial deadlines for tax season or the extension is missed. First, the amount due on your calculated taxes isn't the only amount that can be a part of the tax liens process.

You can end up owing the amount plus interest, penalty costs and costs associated with seeking you out or completing your case. So if you are nervous about what you owe this year weigh the simplicity of filing for an extension and meeting your finally payment date over owing way more money for refusing to pay or facing jail time and more fines for prosecution while trying to wait it out. No one wants to lose their property because they didn't exercise or execute astute financial planning, and paying taxes is a huge part of that process each year.