Coping with a federal tax lien against your property

Chad Silver

Chad Silver

Managing Partner of Silver Tax Group, author of the book "Stop the IRS". Practicing a variety of tax issues, regulations, laws and rights. Specializing exclusively on tax matters involving IRS audits, negotiation, settlements & compromises.

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On behalf of Silver Tax Group posted in Back Taxes on Tuesday, June 20, 2017.

Tax debt can quickly become a significant burden. This sort of debt can even inhibit the enjoyment of owning property you have worked hard to accumulate.

The IRS can place a lien upon property you own – even if title to that property is free and clear. An IRS tax bulletin concerning federal tax liens explains in plain language actions the government can take when it comes to tax debt. In the bulletin, it states that a lien is a “legal claim” by the government in the event you fail to pay a tax debt.

When it comes to liens, there is very little property that the government cannot reach. “The lien protects the government’s interest in all of your property, including real estate, personal property and financial assets.”

A lien can attach to future assets you acquire while the lien is in place. The lien can even attach to business property and accounts receivable. The lien can negatively impact your credit, and the existence of a lien could potentially continue even if you were to file bankruptcy.

It is therefore important as a Michigan taxpayer to understand your rights when it comes to protecting your property in the event of a tax lien. Though the IRS has the power to file liens, the agency must still follow certain requirements before putting a lien in place.

Also, there are ways that you can rid yourself of the lien. This includes paying the debt in full, discharge of the specific property which will remove the lien, and other options.

An experienced tax attorney can provide guidance. They can analyze all of the options and determine which one would be best regarding your specific circumstances.

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