Notice of Federal Tax Lien |
Posted: February 19, 2019 |
It is likely that you knew it was coming. Even though you might have had the best of intentions, the Internal Revenue Service’s tax bills have gone unpaid. Now you have received a Notice of Federal Tax Lien and you are wondering what it means and what to do. While a New Jersey tax attorney is in the best position to advise you on how to address your particular IRS payment issues, the following offers some general information on what a federal tax lien means to you and your creditors and where you can go for further information and assistance. What is a Federal Tax Lien?If the IRS assesses a tax against you and then you neglect to pay the tax bill you owe, the agency will file a Notice of Federal Tax Lien. The Notice of Federal Tax Lien is a public document that is designed to let your creditors know that the government has the legal right to your property and is asserting a secured claim against your assets. In other words, creditors are put on notice that the federal government has a legal right to your property. Credit agencies, if they find the Notice, will include it in your credit report Lien vs. LevyAn IRS lien is not the same thing as an IRS levy. Rather than securing its interest in your property when you don’t pay your tax debt, the government, in a levy actually takes your property to pay the debt. The IRS can levy, seize and sell any type of real or personal property that you own or have an interest in. Unlike a lien, however, an IRS levy is not a public record and should not affect your credit report. How a Federal Tax Lien Impacts YouA federal lien can affect many aspects of your financial life and the rights to your property and the property of your business, including:
A Federal Tax Lien can even affect you if you file for bankruptcy. Tax debts continue after bankruptcy and the liens on future property may continue after bankruptcy. How a New Jersey Tax Attorney Can HelpBefore it issues the Notice of Federal Tax Lien, the IRS may notify you of its intention. You have a right to file an appeal before the lien is placed on your property. A New Jersey tax attorney can assist you with this. If the IRS has already filed the Notice, you should contact a New Jersey tax attorney to weigh your options in having the tax lien removed.
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