If you have ever defaulted on taxes, then you might be familiar with tax liens issued by the IRS. In simple words, tax liens are legal claims issued against you or your business if you have failed to pay your taxes.
Overview of Tax Liens
If you have been issued with a tax lien, it is always better to take advice from credible IRS tax settlement companies usa firms before taking the necessary actions. Tax settlement lawyers are well-versed in tax laws and might offer you the best resolution for getting rid of your tax liens.
Tax liens are issued by the IRS if you owe a huge amount of tax to the government. The IRS will record the document on the government server wherein will be considered a public record. If your property is under tax lien, then even if you sell the property soon, the sales proceeds will go to IRS until the tax lien is paid off.
Now, there is a certain procedure that needs to be followed by the IRS, before they can issue a tax lien to you:
- The IRS will analyze your tax returns and conduct tax audits
- If you owe a huge tax, a notice will be sent to your residential address within 60 days of the assessment
- A timeframe of 10 days is given to pay off the taxes
- Failure to do so, your tax lien will be made public for creditors to investigate
Removal of Tax Liens
Tax liens can also be removed by the IRS if you have paid the taxes within 10 days or if they have filed it in error. In rare cases, IRS can remove the tax liens if your property has doubled over the years, or if your lawyer has filed for a right of subordination.
Tax liens are not to be taken lightly. When it comes to tax liens, it is better to avoid such hassles by paying your taxes on time.