A tax lien is filed when an individual does not pay the taxes owed to the government. In such cases, the individual’s assets are seized (placing a lien) if they do not pay on time.
The federal or state government can file a tax lien against individuals. When you do not pay taxes on your property, a local government can put a lien on you.
The seizure of property will go on until all taxes are paid. In Dallas, residents need to pay close attention to tax liens to prevent the negative consequences of it.
Tax resolution services can help negotiate with the IRS (Internal Revenue System) and get some favorable terms for you if possible. Contact tax resolution services in Dallas to protect your assets.
What is the process involved in a tax lien?
You will receive a letter stating how much money you owe to them. This is a notice that needs to be issued to the taxpayer and demand payment. If you fail to pay the amount, a lien will be imposed on you. It will include all your property, including any vehicles you own.
Furthermore, if you come to acquire any asset during the lien, it will also be included. Even if you choose to declare bankruptcy, the lien will not stop. Usually, debts go away in case of bankruptcy. However, that is the case with tax debt under the federal government.
Is there a way to purchase a tax lien?
The answer is yes. Many states allow public debts such as this one to be auctioned. This is called tax lien sales. Any third party from states and municipalities can purchase the lien during bidding.
If such a thing occurs, you will be owing the debt to that third party who purchased your debts and interests. The property owner gets two years to go until their homes are seized.
How can you know if you have a tax lien?
It usually depends on where you live and can vary from state to state. You can search through the state record office to learn more.
Furthermore, there is an automated IRS system that can tell if any business owes a lien. You can also hire a private service to do the lien search for you.
How can you remove tax liens?
Pay your whole debt:
The easiest and fastest to get rid of a tax lien is to pay all your debts. Once you have made the payment, the Internal Revenue System will let your tax lien go in a matter of thirty days.
Furthermore, if the conditions are favorable for the government and the taxpayer, many other options can be considered to reduce the tax lien.
You can also discharge the property, which will help you remove the tax lien.
Notice needs to be promptly responded to.
You will get a notice stating that you owe a federal tax lien. It is also called a Notice of Federal Tax Lien (NFTL). Such notices are sent once they have determined the tax liabilities on your behalf. You must respond to such notices as soon as possible.
Delaying a response can further complicate your process, and there can be legal complications as well. A tax resolution service can help you in such cases and explore other solutions for you.
You can request a withdrawal
By withdrawing, the debt will no longer be part of your credit. However, certain conditions need to be met in order to request a withdrawal. One such condition is to pay taxes in full.
There is an application form for such purposes; you can use it to withdraw. Hiring a tax professional can help you prepare a better application that looks compelling.
Make tax liens easier with tax resolution services!
Get in touch with tax professionals; they can help you at every step of the procedure. They know the IRS and can thus negotiate favorable terms for you.