Federal Tax Lien: What You Should Know Before It's Too Late

Oct 2
07:20

2007

Matt D Murren

Matt D Murren

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Helpful information about federal tax liens.

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If you are facing a Federal tax lien,Federal Tax Lien: What You Should Know Before It's Too Late Articles or have received notice from the IRS it is not too late to take action. A Federal tax lien is a way that the Internal Revenue Service (IRS) uses to collect past due tax debts. A tax lien basically limits the rights the tax payer has on his or her property. When you are late on back taxes such as income, property, or other taxes a lien can arise. In this article we are going to cover your options if you have received notice of a federal tax lien.

More than likely you have receive a notice of Federal tax lien and are wondering what to do next. The first thing you should do is review the notice and verify the information received in the notice. At this point don’t call the IRS until you have your information together and understand what taxes the IRS says that you owe.

If you are in disagreement with the amount owed or the taxes that are in question you should absolutely call the IRS and get further clarification. Make it known at this point that you are interested in working with them to resolve this matter amicably.

If you do in fact owe the back taxes you might be well served to find a reputable IRS tax lawyer. Prior to contacting them, make sure you have the notice of federal tax lien in front of you and any tax records that are relevant to your case. Many of these firms specialize in negotiating with the IRS on your behalf for pennies on the dollar. They can also assist you in arranging a payment agreement. This option is a great option as these organizations are very skilled in working with the IRS. Most of them have employees that have worked inside the IRS and understand the best way to proceed in protecting your real estate and personal property. The good news is that your lien will be removed once the debt is paid in full.

The key is to act quickly. Many people get a notice of a Federal tax lien and put their head in the sand. This is the worst thing you can do. Make it known that you want to resolve this matter and tell them that you are intent on paying the debt back. If you are not confident that you can resolve on your own, hire a professional. You won’t be sorry.

If you act quick enough you can avoid a bad mark on your credit history. A Federal tax lien is one of the worst things to have on your credit. Creditors will often look at this and either not extend credit or they will give you the absolute highest rate possible.

The bottom line is that it isn’t as bad as it seems if you start dealing with it now. The longer you wait the worse it will get for your credit and your stress levels.

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