| A tax lien is easy to understand if you break it down | | | | Furthermore, a tax lien stays on your credit report for |
| as is usually the first major enforcement used by | | | | a very long time and you don't want to damage your |
| taxing authorities (State or the IRS). A lien in general is | | | | credit. Option 1 is not recommended. |
| a claim or security of interest placed on personal | | | | Option 2: Pay The Lien Off |
| property to secure the repayment of debt. Therefore, | | | | After 30 days, the lien will be released/removed. |
| a tax lien is a lien imposed by Federal or state law to | | | | Easier said than done. Many people cannot pay the |
| secure payment of back taxes. A Tax Lien can be | | | | amount without experiencing final struggle. If you |
| put on your personal property and is communicated to | | | | cannot, you should look to work with professionals (tax |
| the world via the "Clerks" office or state record | | | | attorneys and CPAs) as most individuals face this |
| system. Typically, the IRS or State will notify you first | | | | problem. YOU CANNOT sell your home or personal |
| of unpaid taxes. If you decide not to act (depends on | | | | property until you deal with the Tax lien. |
| state as procedures vary) within 10 days, then a tax | | | | Option 3: Set Up A Payment Plan With The State or |
| lien will be issued on your personal property. This | | | | IRS |
| issuance notifies government public records. | | | | Working with specialists makes it easy and if you |
| What Are Your Options? | | | | setup a payment plan or offer in compromise things |
| Option 1: Do Nothing and Wait. | | | | can become under control. Many Tax Debt Reduction |
| A tax lien generally cannot be enforced after 10 years | | | | companies charge you only fees if they save you |
| but during those 10 years the IRS or State can take | | | | thousands of dollars so its a win, win for you. |
| action by seizing property (banks, house, etc). | | | | |