Federal
tax lien is abclaim made by government on your property. The claim is made when
you fail to pay tax debt. The lien claimed by government, covers all of your
property including real estate, financial assets and personal property.
Internal Revenue Service IRS covers process of lien.
How IRS Carries the Process of
Tax Lien:
As
stated above, IRS covers recovery of federal tax lien. IRS files a public
document. This document is called Notice of Federal Tax Lien. With the help of
this document, IRS notifies the individual that the property he owns holds debt
to government. It also explains that the government has legal right over the
property.
- The IRS assess your liability
- IRS sends you a notice or bill, also known as Notice and Demand for Payment
- This notice contains information and amount that you owe to government
- The notice also contain a critical note on your negligence and failure to pay the debt in time.
Before
we further proceed with Federal Tax Lien and procedure of IRS, it is mandatory
to introduce Dean Graziosi first. Dean Graziosi is a millionaire, successful realtor and entrepreneur and is a famous
public figure. He is one of the most famous real estate business owners of
America. Dean is not new to American people; he is appearing in a famous
infomercial series Motor Millions. He is appearing in this infomercial since
1998.
Dean
also conducts live events throughout country. He has a very generous heart. He
supports a number of charities including one for elderly, a charity for
homeless people and providing gifts to orphans on auspicious occasions like
Christmas. Dean is a true and determined man who is serving people for more
than two decades. He knows all about real estate and keeps sharing his
knowledge with novice, aspirants as well as with successful realtors.
How to Get Rid of Federal Tax
Lien:
The only
way to get rid of the lien is to pay your complete debt on time. Once you have
paid your full lien, IRS will release your lien within 30 days after submission
of the lien. However, in certain conditions (conditions in favor of both
government as well as taxpayer) there are other possible options as well.
- Discharge of Property _ the seller or buyer can submit the property. The property is sold Free of lien.
- Subordination _ In this situation, the loan is not paid or forgiven. Instead, other creditors move forward to give a loan or mortgage, of course on their own conditions and interest.
- Withdrawal _ When you apply for a withdrawal, a public notice is issued. This notice makes it clear that IRS is not competing with other creditors in order to give loan to a taxpayer.
How a Lien Affects You and Your
Property:
A lien
attaches and affects your property and assets in various ways. For instance, during
the period a lien is attached to all of your vehicles, securities and
properties unless you pay it. It will also affect your future purchases of any
kind (vehicle or property). Apart from this, the situation may turn adverse
when IRS issues Notice of Federal Tax Lien against you. With the issuance of
this notice, it will become hard for you to get credit.
A lien
also attaches to all of your business properties including business rights and
receiving accounts. The worst senior occurs when even after announcing or
filing for a bankruptcy your Notice of Federal Tax Lien remains intact.
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