If you owe money to the IRS, the IRS can issue a “tax lien,” which is a declaration that the IRS is claiming your property. A tax lien means the IRS has the first legal claim to your property. This means that the government will receive money to pay your taxes before any other creditor or lender gets paid.
Yes, the IRS cares about itself. You might say to the IRS that you need to pay your credit card bills or you won’t have any more credit, and the bottom line is the IRS doesn’t care. The IRS wants to be paid first.
As you can imagine, it is very difficult to negotiate with the IRS once a tax lien has been filed. But it is possible to settle with the IRS and have tax liens removed. This is what tax professionals do.
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How Can You Resolve A Tax Lien From The IRS?
You can resolve a tax lien from the IRS, but you have to work quickly and tax professionals know what to do and how to do it, and most importantly, they know who to talk to so they can get it done quickly. The easiest way to remove a tax lien is to immediately pay your tax debt, but what if you can’t? You can set up a payment plan — that’s one way. But what if you are so far behind that a payment plan is pointless? This is where tax professionals can do their best work.
Depending on how much property you own, certain property can be exempted from a tax lien. This will allow you to sell that property or to borrow against it. Other options include getting other types of private loans.
But sometimes, the only option is an Offer In Compromise or another Fresh Start program that the IRS offers. Get guidance from a tax professional about these and other options.