Our clients have been able to purchase or sell their property assets or to borrow money using the equity of their homes from removing their liens.
If you avoid filing your taxes when tax season rolls around there are some harsh consequences on your credit. Missing the tax deadline, and not filing for an extension can lead to a tax lien. These derogatory marks occur when you fail to pay a tax debt. The IRS Tax Leniency program began in 2011 for taxpayers who owe taxes but due to financial hardships, may not be able to pay them. The IRS issues about 600,000 tax liens each year. The Tax Leniency program aims to assist individuals and small businesses that have paid their taxes in the past but are financially unable to pay their current liabilities. The goal of the program is to ease tax burdens for taxpayers.
Understanding Tax Liens
A tax lien is a legal claim from the IRS taking action against a taxpayer’s assets if they have failed to pay their taxes. This could mean that the IRS has a legal claim to every asset, as well as future income until the lien has been released. These liens can sometimes be complicated and in various form or detail depending on individual situations. Tax liens can occur on a state or federal level and may come with personal and legal implications. It is very important to contact a professional if this is happening to you, these liens can follow you around and even show up on public records such as a credit report leaving a negative impact on your score.
Preventing a Lien
Paying taxes in full can prevent any tax liens from being filed in the first place. Setting up an installment agreement is another way to meet the IRS requirements to avoid filing a lien. An IRS tax lien ultimately results in the IRS taking control of the property, vehicle title, and seizure of property for auction. Since the laws regarding liens can vary, it is always smart to contact a professional to take charge and prevent a lien from appearing on your report and affecting your life.
How to Remove a Tax Lien from your Report
First off, pay your tax debt in full. If your report is still showing the tax lien, you can file a dispute similar to how you would for a credit error. In the case of Federal tax liens, you can ask the credit bureau to remove the tax lien if it has been withdrawn by the IRS. The professionals at Allied Tax Group can represent on your behalf to satisfy government requirements and remove tax liens to repair credit.
Get Help with an IRS Tax Lien
When you get an IRS tax lien notice, you have a short time span to take action, this means you have to pay them what you owe or offer some other means and or appeal the lien filing. It may be scary to deal with such things on your own, however we have experience in various situations and will take the time to help you find a solution for your particular matter. Due to the constant variation in IRS tax lien laws, we stay on top of them to be able to provide you with the most helpful advice. The tax specialists at Allied Tax Advisory Group can help determine whether you qualify for waiving late penalties, negotiating payment plans, postponing the seizure of assets and deferring collection efforts.
If you are being audited by the Internal Revenue Service, Franchise Tax Board or any other state or local tax authority, contact the tax agents at Allied Tax Group at (818) 338-9090 for a FREE Consultation.