What Is an IRS Tax Lien and How Can a Tax Resolution Expert Help You Deal With This Tax Problem

May 16, 2012 by  Filed under: Taxes 

When you have tax issues, having a tax lien imposed can be extremely daunting, not to mention confusing. Find out exactly what a lien is and how a professional can help you reach an agreement with the IRS in order to lift it.

Taxes are something that we all have to deal with, yet even the most capable among us find the tax code to be incredibly confusing and difficult to navigate. In some unfortunate cases, this confusion can lead to mistakes or to individuals not filing or paying their taxes at all. The problem is, an improperly filed or missing tax return will show up as a red flag to the IRS. Sooner or later, they will come to collect, plus penalties and interest. If you do not have the money on hand to pay what you owe, the IRS has a legal right to engage other means to get it. One of these means is a tax lien. In order to be able to deal with this type of tax issue, you need to know what a tax lien is and how to reach a tax settlement with the IRS so you can resolve it.

A lien is a legal claim made by one party upon another party’s property in order to satisfy a debt. When it comes to taxes and the IRS, a tax lien is a legal claim by the IRS on a person’s property that is made in order to satisfy an outstanding tax debt. This means that if you owe back taxes, the IRS has a legal right to claim your real estate, your vehicle, or other property you own in order to collect the tax that you owe. Tax penalties such as liens are bad enough on their own, but the situation gets even more intense when you consider the fact that a tax lien can show up on your credit report indefinitely. If you are having tax problems and the IRS levies a lien against you, that lien will follow you far beyond the moment in which it was made. If, in the future, you try to purchase property, get a loan, or open a bank account, having a lien appear on your credit report may prevent you from doing those things, even if your financial conduct has been impeccable since then. This is why getting a tax resolution expert in your corner is an excellent idea.

While taxes, tax penalties, and the bureaucracy of the IRS can seem impossibly confusing, the good news is that there are people who make it their job to provide tax help to those who need it. Tax resolution professionals are tax experts who specialize in helping people negotiate with the IRS in order to find workable tax solutions for both parties. The IRS will find a way to get the tax that it is owed, whether that means imposing a lien, seizing your property, or enacting some other tax penalty. A tax resolution professional will be able to advocate on your behalf to the IRS, though, and can often negotiate an offer in compromise or a payment plan that will help resolve your tax debt. This means that you will be able to settle up with the IRS.

When you owe back taxes and the IRS comes to collect, you need to know what tax liens are in order to know exactly what you’re up against. However, it is even more important to know that you can find tax relief from liens with the help of tax resolution professionals.

Penny Jones is a freelance financial consultant and an Internet marketer for Prospect Genius, a leader in local online advertising.

Article Source:
http://EzineArticles.com/?expert=Penny_Q_Jones

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