Federal Tax Liens Vs Credit Report
Nobody likes to pay taxes.
April 15 comes around too fast every year, and people have to come up with money to pay Uncle Sam.
Some people just can't come up with the money; others simply won't come up with the money.
Either way, if you don't pay your taxes the government will put a lien on your property until the debt is paid in full.
This tax lien will be attached to all of your assets; property, vehicles, stocks and bonds.
It will restrict your chances of getting credit, and if you file for bankruptcy there is a good chance the lien will continue after the bankruptcy.
Those are some good reasons to avoid a lien and pay your taxes on time.
This federal lien is a document that is filed with the county where the taxpayer lives or does business.
It lets the general public know that this person has a tax debt.
Once this lien is attached to the person's property, and the owner sells this property, the IRS will be paid out of the sale before the taxpayer is paid.
Eventually the credit reporting bureaus will pick up on this lien and it will show up on your credit report.
There are situations where liens can be removed; if the balance is paid off, if there is a compromise, or if the lien has expired after the ten-year statute of limitations.
There are two ways to remove a lien on your property: withdrawal and release.
Withdrawal is when the IRS dismisses the lien; maybe the lien was filed in error, or they didn't file it in the first place, or against the wrong person.
If this happens, you should contact the IRS immediately so they can review your account and start working on the paperwork to withdraw the lien.
Releasing a federal lien means that the lien is not a detriment to your property.
Liens can be released 30 days after you have paid the outstanding taxes or if you set up a guaranteed installment agreement.
The fact that there was once a federal lien on your property, however, will remain on your credit report for up to ten years.
Requesting and setting up a partial payment installment agreement is easy and takes less time than requesting a compromise.
With a partial payment agreement, the taxpayer makes monthly payments to the IRS, but the taxes are never paid off completely.
After the length of time agreed upon for payment, the remainder of the debt is forgiven.
If you are weighted down with a huge tax debt, this is one of the best ways to have that weight lifted and get out of tax debt.
April 15 comes around too fast every year, and people have to come up with money to pay Uncle Sam.
Some people just can't come up with the money; others simply won't come up with the money.
Either way, if you don't pay your taxes the government will put a lien on your property until the debt is paid in full.
This tax lien will be attached to all of your assets; property, vehicles, stocks and bonds.
It will restrict your chances of getting credit, and if you file for bankruptcy there is a good chance the lien will continue after the bankruptcy.
Those are some good reasons to avoid a lien and pay your taxes on time.
This federal lien is a document that is filed with the county where the taxpayer lives or does business.
It lets the general public know that this person has a tax debt.
Once this lien is attached to the person's property, and the owner sells this property, the IRS will be paid out of the sale before the taxpayer is paid.
Eventually the credit reporting bureaus will pick up on this lien and it will show up on your credit report.
There are situations where liens can be removed; if the balance is paid off, if there is a compromise, or if the lien has expired after the ten-year statute of limitations.
There are two ways to remove a lien on your property: withdrawal and release.
Withdrawal is when the IRS dismisses the lien; maybe the lien was filed in error, or they didn't file it in the first place, or against the wrong person.
If this happens, you should contact the IRS immediately so they can review your account and start working on the paperwork to withdraw the lien.
Releasing a federal lien means that the lien is not a detriment to your property.
Liens can be released 30 days after you have paid the outstanding taxes or if you set up a guaranteed installment agreement.
The fact that there was once a federal lien on your property, however, will remain on your credit report for up to ten years.
Requesting and setting up a partial payment installment agreement is easy and takes less time than requesting a compromise.
With a partial payment agreement, the taxpayer makes monthly payments to the IRS, but the taxes are never paid off completely.
After the length of time agreed upon for payment, the remainder of the debt is forgiven.
If you are weighted down with a huge tax debt, this is one of the best ways to have that weight lifted and get out of tax debt.
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