Important Questions About IRS Tax Liens

Here are some handy answers to some frequentlyWhy would the IRS file a tax lien against me?
asked questions regarding IRS tax liens.The Internal Revenue Service files it for the purpose
What is an IRS tax lien?of securing payment of unpaid taxes. If you have been
An IRS tax lien is when the federal government,served with a tax lien, it is almost always because you
through the Internal Revenue Service, places a claimowe some or all of your taxes. It can also be filed
against your property to secure a tax debt. Before theagainst a corporation, an estate, company, trust,
IRS can file it against you, you must receive a noticepartnership, or association, as well as an individual.
of payment due. If you fail to pay the debt after tenHow do I get a tax lien dropped?
days, the IRS will continue a lien against your propertyThe only way to get it dropped is by full and
for the amount owed. It is applied to all of yourimmediate payment of the money owed. This can be
property like your home, car, and business accountsaccomplished by paying your debt or an Offer in
receivable. The lien will, no doubt, also affect yourCompromise in full. If you agree to the terms of a
credit score.payment plan to the Internal Revenue Service, the lien
How do I know if the IRS has placed a lien on mywill not be dropped until you have reached payment in
property?full. If the statute of limitations expires on your debt, the
Before the IRS can place a lien on your property forlien should be immediately revoked.
unpaid taxes, you will receive a Notice and DemandHow can I prevent getting a tax lien on my property?
for Payment. If you take no action thereafter, the IRSTo avoid being served a tax lien against your property,
will send you a Notice of Federal Tax Lien.you need only to pay your taxes in full and on time.
Is there a difference between a tax lien and a levy?Can I appeal a tax lien against my property?
A levy is when the IRS actually takes possession ofYou can appeal it by contacting the managing agent
your assets against tax debt. This can take the formof the unit filing the lien against you and ask him or her
of a bank levy, a wage garnishment or propertyto review your case. You can also request a
seizure. It is a sort of mortgage against your property,Collection Due hearing. This hearing will take place in
in that if you sell it you must settle the taxes owedthe Office of Appeals jurisdiction. You will need to
before the buyer can assume true ownership. The taxpresent a well-documented case as to why a lien
lien is a guarantee. The levy is the action of taking youragainst your property should not be imposed.
assets.