In the case of Tax Liens, prevention is better than cure. Trust us on that.
A tax lien means that the Internal Revenue System (IRS) has issued a public notification that you are delinquent on your taxes and that they have a claim on your property or assets. By placing a tax lien on your property, the IRS gives itself the opportunity to collect on outstanding tax payments if you don’t pay your taxes. A tax lien gives IRS the authority to seize the property if the tax liability isn’t paid off in time or completely.
But first the IRS must send you a Notice and Demand for Payment. That’s your first warning and should be taken seriously. In fact within 10 days or less of receiving the Notice and Demand for Payment, you will need to make your tax payments in order to prevent any further action from the IRS. But if you don’t, the IRS can then file a tax lien against some or all of your property and assets. Remember, the IRS is protecting the interests of the government and the government requires that you pay your taxes to keep you in good standing with them.
If you don’t pay your taxes in full or on time, there is little to protect you from an IRS tax lien. Even if you don’t have the money, we recommend that you borrow money to pay off your tax debt than get a tax lien against your property. That’s because once a tax lien becomes public, it will last until you pay your liability in full or until the statute of limitation runs out. The statute of limitation is normally ten years. But the impact of the tax lien is more longer lasting in that first it will appear on your credit report and hurt your credit rating. This will impact your ability to buy a house, get a lease on a property, or even get a credit card.
The best course of action is to not be subjected to a tax lien by paying off your taxes on time. If you have already stumbled and find yourself delinquent, it’s time to retain a tax resolution firm like ours to help you immediately resolve your back-tax issues. We work with companies to analyze their situation and identify the fastest and most expedient way in which to get your taxes paid in full so that the wrath of the IRS doesn’t fall on your business.
Contact our office today to make an appointment with an experienced tax resolution professional. You’ll be happy that you did.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.