What is a Tax Lien?
A tax lien is a claim by the Internal Revenue Service against a debtor's property or funds for failure to pay income taxes. When a person does not pay their taxes the I.R.S. may attempt to recover the money owed in taxes by placing a lien on the person¿s home, car, bank account, wages or other property. The I.R.S. will then sell the seized property at an auction in order to recover the tax debts.
Forms of Tax Settlement
The I.R.S. has several methods of working with debtors to reach a solution. Forms of tax settlements include: - Offer in Compromise
- Penalty Abatement
- Innocent Spouse
- Installment Payment Agreement
Bankruptcy and Tax Liens
If a debtor successfully files for bankruptcy the I.R.S. will have to drop their tax lien against the bankrupt debtor. However, once the debtor emerges from bankruptcy the I.R.S. may be able to place a new lien on the debtor's property, so contact an attorney if you are faced with a tax lien and are considering bankruptcy. Do I Need a Lawyer for my Tax Problem?
Taxation problems contain many complicated legal issues. If you are faced with a tax lien or another tax issue, a taxation attorney can help guide you through the process and make sure your rights are protected. |
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