Tax Liens have a devastating effect on taxpayer’s lives, so why would the IRS continue to impose them? The answer is simple; the IRS will continue to impose Tax Liens because they have a high rate of effectiveness. As long as Liens are being filed, taxpayers will be strained into paying their Tax Debt!
Once a Lien is filed your credit rating will be harmed and it will be nearly impossible to buy a house, buy a car, get a new credit card, or even sign a lease. Consequently, it is very important to work to resolve your tax debt before a Lien is filed against you.
Tax Liens Defined
Basically, Tax Liens give the IRS legal claim to your property as security or payment for your tax debt. When the IRS files notice of the tax lien, creditors are publicly notified that the IRS has a legal claim against your property. This includes:
- Property acquired after the tax lien is filed
- Accounts receivable
- House, Car, or Real Estate
The IRS cannot file A Notice of Federal Tax Lien unless they first:
- Assess the Tax Liability
- Send a “Notice of Demand for Payment”
If you neglect or refuse to pay the Tax Debt within 10 days after your received notification, the IRS will create the Tax Lien for the amount of Tax Debt owed.