IRS TAX LIENS
Many consequences come along with not paying your taxes back on time. One of the results of not paying your taxes on time is an IRS tax lien. An IRS tax lien is a legal claim against your property that occurs when you neglect to pay your taxes. The IRS can file a lien against anything that’s your personal property. Items that qualify as personal property include your home, business, car, jewelry, or other property of value. If you’ve received notice that the IRS has placed a tax lien on your property, contact Platinum Tax Defenders today. Our tax resolution experts can walk you through the process of lifting the tax lien. We’ll also help you navigate your options to pay back the IRS what you owe.
WHAT DOES AN IRS TAX LIEN DO?
When the IRS files a tax lien against you, it alerts creditors that the government has the legal right to your property. This public record is available at the county recorder’s office in which you live. As a result, you’ll likely receive a plethora of advertisements in the mail from tax resolution companies wanting to help you. These companies may guarantee that they can get the tax lien lifted for you. However, in reality, the tax lien can only be lifted by a few mechanisms. It’s essential that you seek out the advice of a tax resolution company you trust when you’re attempting to get your tax lien lifted.
WHAT IS THE TAX LIEN PROCESS?
When the IRS files a tax lien against you, it shouldn’t come as a huge surprise. Before the IRS places the lien, the organization must abide by the following process:
- The IRS must assess how much you owe to the government
- A tax bill is sent to your most recent address, demanding the payment
- The taxpayer does not pay the amount owed in the allotted time
After the IRS complies with the above three circumstances, they may file a Notice of Federal Tax Lien.
WHEN WILL THE IRS LIFT A TAX LIEN?
The removal of a tax lien can only happen through one of the following mechanisms:
- Pay your tax debt in full
- Apply for, and receive, an Offer in Compromise (which will reduce the amount of tax debt you owe)
- An Installment Agreement is decided upon and approved between you and the IRS
- You offer to pay your tax debt in full within 120 days of the assessed balance
- The statute of limitations expires on your tax debt (ten years)
DO TAX LIENS AFFECT YOUR CREDIT SCORE?
Previously, if you had a tax lien out on your property, it could affect your credit score. When it affects your credit score, it makes it difficult to buy or sell a home. Although, according to recent reports, tax liens will no longer appear on your credit score. However, a tax lien can still significantly affect your financial life. Therefore, it’s advisable that you seek out the help of the experts at Platinum Tax Defenders for tax relief help.
WHAT IS THE DIFFERENCE BETWEEN A TAX LIEN AND A TAX LEVY?
A tax lien is different from a tax levy. Tax levies give the IRS the right to claim specific properties and assets that are yours. In addition, tax levies are typically a last resort to collect on the tax debt that you neglected to pay. A tax levy is similar to wage garnishment or seizure of property. Tax liens occur when the IRS takes a legal action to place a claim against the property that you own. Essentially, the IRS is claiming the property as theirs until you pay the debt that you owe. The government will usually place a tax lien on real estate property. However, a tax lien can also be attached to other property like the equipment used to run your business.
DO TAX LIENS EXPIRE?
From the date that the IRS assesses your total tax debt owed, they have ten years to collect the tax debt from you. Because of this long period, you often won’t receive a Federal Notice of Tax Lien letter immediately. However, receiving notice of a lien is always a possibility if you know that you have an existing tax debt. It’s better to act sooner rather than later.
CAN A TAX LIEN PREVENT ME FROM GETTING A JOB?
It’s possible that your IRS tax lien will show up on any background checks that a potential employer would run. The affect this has on whether you get the job depends on the state you’re in and the job for which you’re applying. Sometimes finding evidence of a tax lien isn’t a big deal to employers. However, others could view this as a sign of your trustworthiness and responsibility. If you’re applying for a job that would require you to obtain a U.S. security clearance, debt could be considered a security risk. For individuals with a federal or state tax lien, any job with access to security or proprietary information could be out of the question. The best thing to do in this case is to contact a tax resolution professional. The experts at Platinum Tax Defenders can assess your situation and help you resolve it.
HOW TO AVOID A TAX LIEN
A tax lien can take a devastating toll on your financial freedom and the property you own. It would help if you did whatever you can to avoid receiving a Notice of Federal Tax Lien from the IRS. Some of the steps you can take to do this include:
- Hiring professionals to help you file any past or current tax returns. A tax professional can help you find methods that will help you reduce the amount of debt you will owe
- Pay the tax debt in full. You can also negotiate a payment plan that will allow you to pay down your debt in affordable installments. If you want to negotiate with the IRS, it’s beneficial to work with a tax resolution firm. Platinum Tax Defenders can handle the conversations with the IRS for you.
- If you’re having trouble paying off your debt to lift your tax lien, you might qualify for an Offer in Compromise. Once approved, an Offer in Compromise agreement significantly lowers your liability. Contact the experts at Platinum Tax Defenders if you think this route might be for you.
- Lastly, you can work with the IRS to place your account in a “Currently not Collectible” status. This status dismisses tax debt for people who will suffer extreme financial hardships as a result of the tax debt.
GET HELP WITH LIFTING YOUR IRS TAX LIEN
Having a federal tax lien removed is the only way to assure that the IRS does not seize your personal property. The simplest way to do this is to pay back your tax debt in full. Typically, your IRS tax lien will be removed 30 days after they receive payment. Moreover, if you pay off your debts in cash, the IRS immediately removes the tax lien.
When the IRS files a tax lien, your matter is in current collections. It would help if you took action immediately to avoid further collection actions, such as bank levies and wage garnishments. The professionals at Platinum Tax Defenders can assist you in having your federal tax lien resolved once and for all. Getting a tax lien lifted does not happen overnight; it takes time. However, it’s necessary to take action immediately to protect you from other steps the IRS could take. Platinum Tax Defenders has a history of being successful in providing relief from IRS tax liens to many taxpayers.
Platinum Tax Defenders
WHO WE ARE
Platinum Tax Defenders is a full-service tax resolution firm in Los Angeles that has been helping taxpayers resolve their IRS and State tax issues since 2011. Our team of tax attorneys, accountants, and enrolled agents have a combined more than 90 years of experience in the financial services industry. Our team is ready to provide tax relief services to clients facing wage garnishments, bank levies, liens, and other challenges.
WHAT WE DO
Platinum Tax Defenders is a full-service tax resolution firm that includes a tax attorney, IRS enrolled agents, and certified public accountants specializing in providing tax relief services for taxpayers facing IRS or State tax debt. We work with the IRS on your behalf to come up with reasonable payment options and settlements. Our tax professionals are knowledgeable and experts in tax negotiations. The consequences for unpaid taxes vary by each individual taxpayer’s situation. But unpaid tax debt can lead to wage garnishment, property liens, and bank account levies.
Platinum Tax Defenders will help you reach a tax resolution plan before it’s too late. We offer fast response protection to our clients and a commitment to gaining major tax reductions. Whether this is your first time facing a tax problem, or you have previously hired a tax relief firm in Los Angeles to resolve your tax debt, we have a track record of consistently garnering IRS settlements for our clients.
WHY TRUST US
At Platinum Tax Defenders, we’ve developed an impeccable reputation for doing what’s best for our clients, 100 percent of the time. We are honest and upfront with you about your tax debt situation, and the type of tax resolution services we can provide. Each individual tax situation is different, and we’ll do whatever we can to negotiate with the IRS to help you reach a tax relief plan that works for you. We are experts in our field and work diligently to resolve the specific tax issues that each of our clients face. Platinum Tax Defenders offers fair and honest tax resolution services, and you can count on us to operate professionally and legally.
Many tax relief services in Los Angeles tend to make promises that are unrealistic. You can count on us to always be honest and upfront about your financial situation, and what type of tax resolution results you should expect.