Over 20,000 a week wake up to find that there has been a federal or state tax lien filed against them. A federal or state tax lien is by definition is as follows:
Internal Revenue Code section 6321 provides:
Sec. 6321. LIEN FOR TAXES.
If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belong to such person.
Internal Revenue Code section 6322 provides:
Sec. 6322. PERIOD OF TAX LIEN.
Unless another date is specifically fixed by law, the lien imposed by section 6321 shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time.
Why was a tax lien filed?
A tax lien is filed after the IRS or state have assessed a tax liability on a tax payer. Generally, the “tax payer or person liable for the tax” described in section 6321 must pay the tax within ten days of the written notice to pay the debt in full. If the tax payer fails to pay this debt within the 10 day period then generally the IRS or state issue a tax lien that is filed within the county clerks office in which the taxpayer resides.
Why is it filed in the county clerks office and is this public?
The reason the IRS or state will file this in the county clerks office is to to create a priority right against persons other than the taxpayer (such as competing creditors), the government generally must file the Federal Tax Lien in the records of the county or state where the property is located. Once this has been filed the public notice is given to other creditors to show the IRS or state has a claim again all property owned by the tax payer. The tax lien is a public record that can be found and sought by anyone and at this point it is on your credit report which affects your credit rating.
What happens after the lien is filed?
The Federal or State Tax Lien is the government’s statutory right to any assets or property to secure the payment of this tax.A Federal or Tax Lien applies to all property and rights to property of the taxpayer. Unlike the “intent to levy” which has restrictions. Once a tax lien has been imposed on you the IRS or state has 100% authority to garnish your wages, levy bank account, asset seizures and recover funds by any means possible.
How can I remove a federal tax lien?
A tax lien will remain until the debt has been satisfied. An offer in compromise or payment plan does not affect a lien has been paid in full.
In order to have the record of lien released a taxpayer must obtain a Certificate of Release of Federal Tax Lien. Usually, the IRS will not issue the certificate of lien until the tax has been paid off or the IRS has no legal interest in collecting the tax. The IRS will generally remove the lien within 30 days and the taxpayer can receive a copy of the Certificate of Release of the Federal Tax Lien.
What to do if you have a federal or state tax lien?
First Class Tax Relief representatives have been helping people with tax liens for over 25 years. We are skilled in being able to contact the IRS or state quickly ensuring that no unforeseen liens, levies or garnishments take place. Once we are able to protect your assets we will get you on a resolutions plan that will be within your ability to pay and will not create a financial hardship on a tax payer.
Do not let the IRS or state seize your wages, bank account or property. First Class Tax Relief Can Help you Today.
Call us Today at 1-877-865-4561 and let one of our Tax Consultants analyze your tax situation and help you get tax resolution.