Tax Liens And Repayment Issues

IRS Lien Problems

The IRS utilizes many different tools to collect on the debts that many Americans owe each year. They can put things into place such as wage garnishments, tax liens, and payments plans. Depending on the amount of money owed to the IRS and the amount of time money has been owed will help to determine the type of repayment plan that is used. Each individual situation requires a different solution. One of the most extreme methods IRS imposes on a taxpayer is a tax lien.

Tax Lien Problems

A tax lien can cause a lot of problems for the taxpayer. The lien is placed on all of their assets which make financial moves nearly impossible. This lien can be issued for anything from failure to pay income taxes or delinquent taxes on personal items. The lien will affect everything that the taxpayer owns including their home, cars, and bank accounts. In most cases, the taxpayer will not notice there is a lien on their property since they are still in possession of the property. It is when the taxpayer tries to sell their property or apply for a loan that they will notice the problem. This makes it difficult to repay the debt.

Tax lien problems are not easy problems to deal with. In some cases, a person may try to sell his or her home in favor of a cheaper one to help pay off the debt to the IRS. A tax lien will prevent this from taking place. In some cases, hiring a tax attorney can help to convince the IRS to lift the tax lien and allow the taxpayer to take out a loan or sell their assets in an effort to pay off the debt that is owed. In these cases, the IRS may temporarily lift the lien and give the taxpayer a chance to make good on their debt. If the debt is paid, the IRS will not need to reinstate the lien. But if the taxpayer fails to pay the debt after given this second chance, the lien will be reinstated and likely will not be removed again until the debt is repaid.