A tax lien is a legal claim or hold the government has over an individual’s assets, when the individual fails to pay their taxes or file a tax return.

When a lien is placed on your property or asset, you are not allowed to sell or liquidate it. However, when the debt is paid, the lien is taken off in 30 days, and you are free to do as you please with the asset. .

Before a lien is placed on an asset, you will first be contacted and notified of your debt and the amount. If you fail to respond to this letter or resolve your tax debt, a lien can be placed on your assets.

If you proceed to get other assets when the lien is still in effect, the new assets fall under the lien as well.

A tax is very bad for your credit report. It appears on the tax payer’s credit report once it is in effect, and even after the debt has been paid, it can remain on the credit report for up to seven years. Another unpleasant fact about tax liens is that even bankruptcy doesn’t take the lien away.

How to get out of a federal tax lien 

To get out of a tax lien, you must choose a suitable option for resolving your tax debt. The IRS has diverse options laid down for people in debt. If you come to an agreement with the IRS on a monthly payment plan that allows an automatic withdrawal from your account monthly, the lien on your assets can be lifted.

Tax liens appear on your credit report and that is bad for your credit score; it also prevents you from getting access to many loans and amenities.

Tax liens are bad for everybody and should be addressed immediately. We have experts who can help you get a tax lien removed from your assets. It can be an overwhelming experience, but it is not the end of the world as you do not have to face it alone.

Call us now to discuss your tax case and get all the help you need.