| Your credit score will plummet! When the IRS puts a | | | | that the lien get removed. |
| federal tax lien on your credit your borrowing ability is | | | | There are exceptions to the rule...There are situations |
| completely shot. You have no chance of getting a loan | | | | that can prevent a tax lien aside from just being |
| or getting any kind of financing until you pay off your | | | | destitute. The following list from the IRS will keep them |
| IRS debt. Unlike other IRS collection actions like levies, | | | | from imposing a lien. It should be noted that the reason |
| where the IRS seizes money from you bank or | | | | these situations prevent a tax lien is because there's |
| paycheck, a lien is very difficult to get removed. The | | | | nothing to put a lien against. |
| IRS's main goal with a tax lien is, according to the IRS, | | | | 1. The debtor is a defunct corporation where the |
| "to promote payment compliance." | | | | assets have been liquidated |
| Work the system...However, even though the IRS | | | | 2. The debtor is deceased and there are no known |
| seems all powerful, and I will attest to the vast power | | | | assets in the estate. |
| it can wield; there are limitations to what it can do. | | | | 3. The debtor lives outside of the United States and |
| The IRS is a bureaucracy, and like every bureaucracy | | | | doesn't have any assets in the States. |
| there are procedures that must be followed. Before | | | | 4. The debtor can prove that the tax lien on their credit |
| you can be hit with a tax lien the IRS must complete a | | | | would cause them to be unable to pay on their IRS |
| few things: | | | | debt. |
| 1. An income and lifestyle assessment must be done. If | | | | 5. The tax lien would prevent them from getting a loan |
| you're already destitute or your credit is already | | | | to pay off their debt. This is only a temporary solution. |
| destroyed there isn't any use in the IRS imposing a tax | | | | You must turn in your loan documents proving that you |
| lien. | | | | are trying to settle your debt by a date set by your |
| 2. The IRS has to have already made a demand for | | | | revenue agent. |
| payment from you. The IRS has to make an effort to | | | | Use the knowledge...Now that you know what goes |
| reach an agreement with you before they can start | | | | into a federal tax lien, you should be better prepared to |
| any kind of involuntary collection action or impose a lien. | | | | deal with the IRS when they send that letter |
| 3. This is where you come in...you must have neglected | | | | threatening a tax lien. But as always, when dealing with |
| or refused to pay your IRS debt. Not working with the | | | | the IRS, don't give them the chance to stick you with a |
| IRS is the number one reason people have tax liens or | | | | tax lien. Always take the first step, and come up with |
| other collection actions taken against them. | | | | a solution before the IRS dictates a solution. |
| The federal tax lien will remain in effect until the debt | | | | Now you have the smoking gun...Use it! |
| has been paid in full, or special circumstances require | | | | |