What You Need to Know About Tax Liens

A Lien is a measure the IRS can take out against you if you fail to pay your taxes or respond to messages from the IRS telling you to do so.  With a tax lien against your property, you will be unable to sell or transfer that property, or to even take out a loan against your property.  Liens also negatively impact your credit, so they make it difficult for you to return to financially stable ground, even

Jar of tax money

after the lien has been removed. And beyond those huge consequences of a lien, even a bankruptcy will not remove the lien, so in order to avoid receiving a tax lien in the first place,

  1. Open mail from the IRS promptly, and don’t let it pile up unopened on your desk.
  2. Respond immediately to any correspondence from the IRS, especially if they threaten you with a tax lien.
  3. Follow the direction of the IRS to avoid the damage a lien could do to your finances today and your credit into the future.

If you have already had a lien filed against your property by the IRS, it is in your best interest to contact a lawyer who specializes in tax law.  By doing so, you will be able to avoid some of the financial trouble and stress that a lien is sure to cause you on your own.  By getting on top of the issue as soon as you can, you will be able to combat the lien, and come out with your finances and credit as protected as possible.

photo credit: Tax Credits via photopin cc

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