A tax lien is something most people have heard of, but if pressed on the issue, many don’t really know what they’re all about. While that’s a good thing and probably means that you’ve never had a lien levied against your property before, it can come as a serious shock when you find out you have to handle one. Learning how to find out if you have a tax lien can save you a lot in fines, interest as well as prevent the IRS or State to seize your assets or funds from your bank account.
The good news is that taking care of a tax lien is something you can tackle. In some cases, the lien may also have been reported in error, which is generally easy to clear up. Use this guide to learn more about tax liens and how to find out if you have against your property.
Left unattended, a tax lien can result in the government taking money directly out of your bank account or garnishing your wages. Getting any sort of credit may also be very difficult when you’ve got a lien on your property. Avoid these problematic situations by doing your homework and tackling your lien right away.
A tax lien is what happens when the government puts a claim on your property due to failure to pay taxes. Typically, your government agency will send a letter to you before actually placing the lien, asking you to pay back taxes or simply file your tax return for a past calendar year. Even if you do not owe taxes, a lien may be placed against your property if you do not file a return at all.
After sending a letter about payment due, the government agency typically places a lien against your property. This may go along with a lien against earnings you make from any type of employment. It is the government’s legal right to do this if you are not paying your taxes or filing your tax returns at all.
Figuring out if you have a tax lien against your property is often a simple process since you’ll likely be notified by a government agency. However, there are cases where you may be living at a different address or your notices simply do not make it to you. The preceding list how you can perform a tax lien search
Removing a tax lien is generally a relatively simple procedure, though you will likely need to deal with a government agency to do this. The list above are some ways you can begin to get your tax lien issues resolved.
A tax lien will typically show up on your credit report, which can make it very hard to buy property, get a credit card or handle basic needs like getting a car. You may also have a harder time getting employed by a company that runs a background and credit check since a person with a tax lien levied against they may be a financial risk.
While some states have statutes of limitations regarding collections, these can vary and be long enough to cause you serious problems. In most cases, simply paying your tax bill, making installment arrangements or requesting that an old solved lien is removed is your best course of action.
A tax lien can wreak havoc on your life, so getting yours resolved quickly is of the utmost importance. Follow this simple guide and you can get back to living a life free of debt and the fear of garnished wages or frozen assets. Knowing how to find out if you have a tax lien can certainly ease the concerns about past due or unpaid taxes.