When you owe the IRS back taxes they have a right to put a lien on your property. The lien is the federal government's means of putting a legal claim on your property as a measure of security for payment on any taxes that you might owe. The IRS must first assess and determine how much the liability is that you owe the government, and then send you a demand notice for payment on any unpaid IRS taxes, before they can put a lien on your property. If you neglect to respond to the notice of demand to pay those taxes then the government has a right to put a lien on your property for the amount of taxes that you owe the government in any unpaid back taxes.
How this will affect the tax payer
When you are in debt to the IRS and they put a lien on your property then your creditors are notified of this lien. This prevents any creditor from buying your property or trying to sue you for said property because now the government has claim to the property. This IRS tax lien can be very harmful to your credit rating. You could end up losing your home, car, or any valuable personal property that you own unless you pay the government the unpaid IRS taxes that you might owe.
What to do to get the IRS Tax Lien Released
The government will release your tax lien after thirty days after you have satisfied their demand for payment on any unpaid taxes that you owe. You must also pay any penalties or fees that were assessed before your tax lien can be released. When the government has had to pursue this matter in court you are responsible for any court fines that you were charged. If you are not able to meet your debts to the IRS then your property will be sold at auction to cover the amount of any unpaid taxes that you might owe. Also if the property does not cover all of your unpaid IRS tax then you are still held liable for the remaining amount of back taxes.
Appeal of an IRS Tax Lien
When you feel that the IRS has unjustly put a tax lien on your property you do have a right to make an appeal. The IRS is required by law to give you notice of your tax lien within five days after they have made the filing of a tax lien on your property. The IRS agent has a right to give you this notice in person, send it to you through registered mail or go to your office and present you with a tax lien. After you have been served the notice you do have the right to make an appeal if the following:
• The IRS serves you with a tax lien after you have already paid the amount you owe in back IRS taxes.
• If the IRS serves you with a tax lien and you are already in bankruptcy which gives you an automatic stay.
• The IRS tax accountants made an error in their assessment against you.
• The IRS may not serve you after the statute of limitations has run out.
• The IRS must have given you the right to dispute the amount of taxes that they claim that you owe.
J. Stefan is a senior paralegal and supports two IRS tax attorneys at the Dallas office of Allmand and Lee. She assists counselors who represent individuals with IRS tax problems and aids in their issues being addressed until they are solved. Josie has over 15 years experience and shares common problems and resolutions individuals face on her IRS Debts Secrets blog daily.
For more information and tips on how to avoid IRS tax bankruptcy, visit IRS Debts Secrets now. Allmand and Lee are Dallas and Fort Worth Bankruptcy Attorneys who fight the IRS on behalf of many Americans, negotiating on their behalf to minimize unpaid taxes and tax penalties. Visit the site today to find answers on how to manage your tax troubles.