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How to Respond to a Tax Lien Notice
Failure to properly respond to a Notice of Federal Tax Lien (NFTL) can have a devastating impact on your life and your finances. Once filed, these liens can affect your ability to get credit, sell or transfer assets- including your home- as well as attach to business property, including accounts receivables. A Federal Tax Lien is a precursor to a Federal Tax Levy, and is not typically discharged in a bankruptcy.
The Notice Of Federal Tax Lien is a public notice filed by IRS to notify creditors of the IRS' interest in all your property. All tangible and intangible property you own or have an interest in is subject to lien, including vehicles, real estate, financial assets, and personal property. The purpose of the federal tax lien is to protect the government's interest in your property up to the amount of the unpaid tax liability (including applicable fees, penalties, and interest). A Federal Tax Lien impacts property you own now or may acquire in the future during the lien period.
Once a Tax Lien is filed, there are options available to mitigate the negative impact it has, but you must take timely action and comply with IRS guidelines. By paying the underlying tax debt in full, participating in one of the IRS Fresh Start Initiatives, or requesting subordination or discharge of the lien, you may succeed in having your tax lien released and/or completely withdrawn in some instances. To abate a Federal Tax Lien, you must satisfy or make arrangements to satisfy the underlying tax liability. If you do nothing, the IRS will enforce collections by levy or seizure and sale of your property.
If you owe more than $10,000 in unpaid taxes, or have defaulted on a previous agreement to pay your taxes, you are at imminent risk of a tax lien filing. YOU NEED TO CONSULT THE TAX RELIEF SPECIALIST AT HTFS TO REVIEW YOUR OPTIONS. Tax lien filings have serious consequences on your credit rating, in employment background checks, and can encumber property you own now or acquire in the future.
As an IRS licensed Enrolled Agent, I know the ins and outs of IRS collections procedures and processes, and can negotiate the best deal to prevent a lien filing and/or resolve you tax lien. The risks are too great to go it alone.
Call today for your free, no obligation consultation.