If you have received a Notice of Federal Tax Lien, contact a tax lien attorney at Randolph Law Firm right away for a free consultation. As you may have discovered, the Internal Revenue Service can be aggressive in its attempts to collect on tax debt, whether it is related to unpaid taxes on your personal or business income. Without tax relief, your finances and your property may be at risk.
The IRS can legally go into a taxpayer’s bank account and take funds or use wage garnishment to satisfy the debt. This is known as levying an account — and it can garnish a significant portion of a taxpayer’s income without suing that taxpayer. Such collection methods can make life miserable for people who may already be struggling to meet their financial obligations.
The IRS can also put liens on and seize personal property. If a lien, which is essentially a public notice, is placed on your house, for example, you will be unable to sell it until the lien is removed, and your credit may be impacted adversely. In such cases, the help of a skilled tax relief lawyer becomes essential.
A tax lien is a legal claim made against your property by the government. The IRS may take this step when you fail to pay your tax debt in the allowed time. A tax lien applies to all your property, including real estate, financial assets, and personal property. It will also attach to any assets you get while it is in place. Additionally, the lien attaches to your business property and rights to business properties, such as accounts receivable.
Filing this public notice lets other creditors know that the government has a protected interest in your property. A tax lien gives the IRS first rights to the proceeds of the sale of associated property or assets. It does not, however, allow the government to seize any property or require its sale.
With few exceptions, a tax lien continues until the outstanding debt is satisfied. Upon payment of the past due balance or agreeing to a payment plan, the IRS will typically remove the lien. If no attempt to settle the arrears is made, however, the IRS may advance to other collection options, such as a levy.
If your bank account is levied by the IRS, or if a lien has been placed on your property, we can put a stop to it through legal intervention with the IRS. Tax attorney Taylor Randolph has helped many people get their financial lives back on track. Our attorneys will work with the government agency on your behalf to help you obtain tax relief. This may include reaching agreements that stop levies and other intrusive measures.
In your situation, the solution may involve:
The Las Vegas tax debt lawyers at Randolph Law Firm have more than 50 years of combined experience helping taxpayers like you find tax relief solutions to remove IRS liens and bank levies. Our law firm has saved our clients more than $500 million in tax debt payments.
To have a tax lien filed against your property may not seem a serious matter, as your property is not yet at risk. However, liens can have several negative effects that may affect your finances in the short-term, as well as in the long-term.
A Notice of Federal Tax Lien will affect your ability to sell your property or take out a loan. Due to pre-employment background screenings, having a lien on your record may also adversely impact your employment opportunities.
Some of the most common effects you should be aware of include:
While the terms are sometimes used interchangeably, liens differ substantially from levies. Each represents a serious action the IRS may take to recover past due tax balances. Knowing the difference between a tax lien and a levy helps protect your money, your wages, and your property.
Also referred to as garnishment, a levy is the lawful seizure of property or assets to settle a debt. When you owe money, state agencies, the IRS, banks, or other creditors may have the right to garnish certain assets. This property is then liquidated, and the proceeds are applied to satisfy back taxes or other debts.
Assets subject to garnishment include bank accounts, accounts receivable, and retirement accounts, as well as physical property such as real estate, vehicles, or valuable collections.
Often a step taken before issuing a levy, tax liens are claims made against property. A lien will substantially restrict your rights with regard to the management of the involved assets. However, unlike with a levy, you will still retain ownership of assets that have liens placed against them.
As a public record, a lien will often adversely affect your credit report. A tax levy, on the other hand, is not public record. Therefore, it should not impact your credit score.
To avoid further issues and regain control of your property, you’ll want to deal with a tax lien right away. You have several options available to you. Experienced tax attorneys can advise you of your legal rights and options, and guide you through the process of having the IRS tax lien removed.
The most efficient path to resolve a tax lien is to pay off your outstanding balance. The IRS will lift the lien within 30 days of the payment. If that is not an option given your financial situation, you may consider getting on a payment plan with the IRS. This will spread out paying off your debt over time, but may allow you to get out from underneath the lien.
Alternatively to a payment plan, you may ask for an offer in compromise. An OIC will allow you to immediately pay off your debt, but for less than the full amount.
If you consider filing for bankruptcy, keep in mind that the protections offered will not necessarily apply to tax debts. Therefore, the lien will likely remain in place, and you will still be required to pay off the tax debts.
Sometimes you may disagree with the IRS’s decision to file a tax lien or the grounds upon which it was filed. In certain situations, you may have the right to appeal such a decision. IRS claims can be disputed to the agency, its independent office of appeals, or before the U.S. tax court.
At Randolph Law Firm, we can help you remove a federal tax lien and get a workable plan for all your debts. While you may owe taxes, you have rights as a taxpayer that we will fight to protect. Contact us to speak to a knowledgeable Nevada tax attorney about your situation.
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