Colorado Springs: Why Did the IRS File a Lien on My Assets?

How would you answer the following questions:

1. Did you fail to file your tax return? 
2. Did you fail to pay your tax full? 
3. Or, did you fail to arrange to make payments on your taxes if you were unable to pay in full?

If you answered "yes" to any or all of the above questions and you owe the IRS more than $10,000, then that is probably why you received the notice of an income lien on your assets. What makes it possible for the IRS to file a lien.  Under the Internal Revenue Code Section 6321, the IRS has the authority to protect the governments interests by filing lien.  When a lien a placed, the IRS then has a legal claim to your property when you neglect or fail to pay your tax.

Three conditions must be met for a tax lien to attach to your property:

1. The IRS assess your tax liability of $10,000 or more.
2. The IRS sends you a bill explaining how much you owe.
3. You either neglect to make payment or refuse to pay in full within 10 days

After each of these conditions is satisfied, the lien attaches to all your assets including real estate, personal property, and financial assets.

An IRS tax can have a significant impart on your credit score.  Thus, you may find it more challenging to qualify for loans or credit.  If you want to sell or refinance your home, an IRS tax lien will make it more challenging to accomplish, but not impossible.  With the tax lien the government has an interest in your property as security for the tax debt.

In what ways can you address a tax lien:

1. Pay the debt in full
2. Request a payment plan, which the IRS may agree to and withdrawal the lien
3. You may qualify for lien subordination, to allow other creditors to move ahead of the IRS

If facing an IRS tax lien, prompt action is necessary. I recommend consulting with a tax professional who can provide you with the needed guidance to resolve this issue as quickly as possible after they take a complete look at all your facts and circumstances.

 

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com