Tax Lien

Tax Lien

The tax industry has its own unique language, filled with terms like wage garnishment, levies, and liens. For the average taxpayer, understanding these terms and their implications can be confusing. But when a tax lien is placed on your property, it’s critical to understand what it means and how you can take action.

What Is a Tax Lien?

A tax lien is a legal claim made by the IRS against your property when you owe unpaid federal taxes. Unlike a tax levy, which can seize assets directly, a lien secures the IRS’s legal claim to your property, ensuring they have the first right to it over other creditors or lenders. Essentially, the IRS establishes that they will be paid before any other parties receive payments for their debts.

A tax lien can significantly impact your ability to access credit and sell property. However, there are ways to resolve this issue and protect your financial future.

How to Resolve a Tax Lien?

The most effective way to resolve a tax lien is to repay your tax debt in full. Once the debt is paid, the IRS will release the lien within 30 days. However, paying off the full amount may not always be feasible due to the size of the debt. Fortunately, there are other options available to manage the lien:

1. Set Up a Payment Plan: If you can’t afford to pay in full, setting up a payment plan with the IRS is a good option to avoid or lift a lien.

2. Discharge of Property: If the lien is only on specific property, you may be able to have the lien removed from that property, making it easier to secure loans or sell the asset.

3. Subordination: This option gives priority to other creditors, which can help you secure business loans or pay off tax debt faster.

4. Refinancing: Refinancing your debt can potentially lower the interest rate on your loan, helping you pay down your tax debt more quickly.

How FreshStartTaxRelief Can Help

Managing a tax lien can be an overwhelming process, but you don’t have to go through it alone. FreshStartTaxRelief makes it easier for you to understand if you qualify for professional tax relief. By filling out our free survey, you can be connected with an experienced tax relief professional who has a proven track record of resolving tax liens and helping taxpayers regain control of their finances.

Ready for a Fresh Start?

Don’t let a tax lien dictate your financial future. Fill out our free survey today to find out if you qualify for professional tax relief and take the first step toward resolving your tax issues. FreshStartTaxRelief is here to help you navigate the process and connect with the best tax professionals in the country.