The Tax Services and Assistance You Need
Issuing a federal tax lien is one way that the IRS collects back tax debt. It gives them a legal claim to your property as security or payment for your debt. It cannot happen over night, but it can happen quickly.
A Notice of Federal Tax Lien may only be filed after:
- The IRS assesses the liability
- The IRS sends you a Notice and Demand for Payment
- and You neglect or refuse to fully pay the debt within ten days after notification
Yes, after only ten days of notification the IRS could put a lien on your property because of back tax debt. It may not seem like much, but a tax lien will show up negatively on your credit report and can keep you from selling your assets. You are forced to deal with the lien and the tax problems before any sale can go through.
If you already have a tax lien on your property or have received the notification, there are ways to deal with the situation. Each option requires multiple requests and communications with the IRS. It is important that you work diligently to resolve all tax issues before a lien becomes necessary.